Cryptocurrency inflows from asset managers such as 21Shares, Bitwise, CoinShares, Grayscale and ProShares added $43 million last week, marking the 11th consecutive week of $1.8 billion, according to CoinShares’ latest report.
Bitcoin BTC
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Base funds remain a key focus, with $20 million worth of funding added last week to $1.7 billion year-to-date.
However, total inflows were down significantly compared to $176 million and $346 million respectively over the previous two weeks.
The Ethereum investment product continued its turnaround, witnessing inflows of $10 million and recovering from $125 million in annual outflows with inflows of $19 million for the sixth week in a row.
Solana and Avalanche-based funds also remain “clear favorites” among investors, with inflows of $3 million and $2 million respectively, Butterfill said.
Regionally, Europe dominated, reporting inflows of $43 million. The US saw $14 million in inflows, half of which were short positions. Hong Kong was again a major outlier, seeing $8 million in outflows in the second week. Funds worth $4.6 million were also leaked from Brazil.
Weekly cryptocurrency asset flows. Image: CoinShares
Short Bitcoin positions increase
In particular, recent price rises and perceived downside risks have led to a significant increase in Bitcoin short position inflows of $8.6 million, according to James Butterfill, head of research at CoinShares. This is more than double last week’s selling inflow.
Some of these risks appear to have surfaced this morning, resulting in the liquidation of over $94 million worth of Bitcoin positions on centralized exchanges, most of which ($85 million) were long positions. This led to a total of $360 million in liquidations across various platforms, sending Bitcoin down as much as 10% on some exchanges before rebounding, according to CoinGlass data. Bitcoin is currently trading around $42,364, according to price data from The Block.
Blockchain stocks witness record inflows as stocks surge.
Blockchain stocks also saw their highest weekly inflows ever, at $126 million for the eighth straight week.
Last week, Bitcoin mining companies Bitfarms and Core Scientific soared 46.2% and 43.5%, respectively, while Argo Blockchain (31%) and Terrawolf (20%) also recorded significant gains. But not all miners did the same. Cipher Mining lost 4.3% for the week, while Hut 8’s shares fell 3.9%.
Coinbase and MicroStrategy stocks underperformed Bitcoin, rising 1.5% and 5.1%, respectively, compared to Bitcoin’s 6.6% gain. Bitcoin mining hardware maker Canaan had an even tougher week, falling 19%, joining Galaxy (-1.62%) and Bakkt (-3.80%) as one of the only cryptocurrency-related stocks to lose value last week.
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