What's Going On With Bitcoin, Ethereum, Solana Asset Flows? Price Declines Due To Mt. Gox Are Buying Opportunities: CoinShares

Bitcoin BTC/USD saw strong institutional inflows last week, despite a recent price slum dragging its price below $60,000.

What Happened: According to a Monday CoinShares report, digital asset investment products experienced inflows totaling $441 million. Recent price declines, driven by Mt. Gox and German government selling pressure, are buying opportunities, according to the firm.

Exchange Traded Products (ETPs) trading volume came in at 7.9 billion for the week. This mirrors the typical summer month volume slump. This represents a 17% lower participation rate compared to the total market for trusted exchanges.

The U.S. saw $384 million in inflows, but opportunistic buying was also noted in Hong Kong, Switzerland and Canada, with $32 million, $24 million, and $12 million, respectively. Germany was an outlier, experiencing $23 million in outflows.

Bitcoin saw $398 million in inflows, although its 90% share of total inflows was uncharacteristically low. Solana‘s SOL/USD $16 million in inflows brought its year-to-date (YTD) inflows to $57 million, making it the best-performing altcoin from a flows perspective. Ethereum ETH/USD sentiment seems to have turned, seeing $10 million in inflows, but remains the only ETP to have seen net outflows YTD.

This sentiment hasn't been reflected in blockchain equities, which saw a further $8 million in outflows last week, bringing YTD outflows to $556 million.

Also Read: Spot Ethereum ETFs Could Launch In A Week Or Two, Says ETF Analyst Nate Geraci: ‘How Quickly Will SEC Turn These Around?’

Why It Matters: The inflows into digital asset investment products come as the cryptocurrency market is experiencing a new bout of volatility. On July 8, Japanese investment firm Metaplanet Inc. doubled down on its Bitcoin investment, purchasing an additional 42.47 Bitcoins worth nearly $2.5 million. This move increased the firm’s total Bitcoin holdings to 203.73, making it Japan's largest corporate holder of the digital currency.

On the other hand, economist and Bitcoin critic Peter Schiff recently highlighted concerns over ETF investors being set up to bear the brunt of losses. Schiff suggested that while the "smart money" is selling Bitcoin in the spot market, the "dumb money" is buying it through ETFs.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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