CoinShares reports a strong influx of $2 billion into the crypto market, primarily driven by Bitcoin’s $1.8 billion in inflows. Ethereum also saw positive movement, though altcoins lag behind. Market dynamics remain affected by macroeconomic factors and upcoming Fed decisions on interest rates. CoinShares maintains its role as a significant player in the digital asset sector, having pioneered multiple investment solutions in Europe.
In its latest weekly review, CoinShares, under the guidance of its Head of Research James Butterfill, has provided some noteworthy insights into the crypto market. The latest ‘Digital Asset Fund Flows Weekly’ report shows an impressive global influx of $2 billion into the crypto arena just last week. This marks three consecutive weeks of positive inflows, with Bitcoin taking centre stage, attracting a whopping $1.8 billion.
Ethereum’s showing, while smaller, should not be overlooked. The second-largest cryptocurrency saw inflows of $149 million in the latest week following $187 million the week before. Solana, in contrast, only managed to pull in $6 million, reflecting a more modest interest. Over the past three weeks combined, the digital asset sector has enjoyed $5.5 billion in fresh investments after facing nine weeks of outflows. Year-to-date, the total inflows now hit $5.6 billion, with the United States leading the charge at $1.9 billion, followed by Germany at $47 million, Switzerland at $34 million, and Canada at $20 million.
However, despite these buoyant inflows, one might wonder why the value of cryptocurrencies hasn’t surged. Yes, prices have ticked up in the last fortnight, but it’s primarily a rebound from substantial declines earlier in April. Bitcoin has notably bounced back to levels not seen since March, though Ethereum’s revival has merely returned it to its early April standing.
The report indicates that while Bitcoin is clearly winning the inflow battle, altcoins are lagging, with their performance appearing lacklustre in comparison. To put it into perspective, Bitcoin has risen by 13% over the last month, whereas Ethereum is down by 1%. Interestingly, Solana has surged by 20%, and some smaller cryptos in the top 20, like SUI, have jumped a remarkable 50%. Yet Bitcoin’s dominance has grown from 63% to 65%, illustrating the ongoing struggle altcoins have against BTC.
Traditional financial markets and overarching macroeconomic conditions are certainly influencing cryptocurrency prices. Right now, much depends on looming US trade policies and decisions from the Federal Reserve. Tomorrow, on May 7, the Fed will reveal their interest rate plans, and while it’s expected that rates will stay unchanged, the real question is how Fed Chair Powell will outline future expectations during his press conference. The market is anxious about the possibility of extended restrictive policies, while many are hoping for some easing.
CoinShares itself has established a significant presence in the digital asset realm. Founded in 2013, the firm specializes in investment services aimed at both institutions and individual investors. They were pioneers in the European market, notably launching the first Bitcoin ETP in the region. CoinShares is regulated by various authorities, including Jersey’s Financial Services Commission, France’s Autorité des marchés financiers, and the US’s Financial Industry Regulatory Authority. The company is listed on Nasdaq Stockholm under CS, and has also seen its shares available on the OTCQX in the US as CNSRF. Initially priced at $13.6 during its 2021 stock market debut, CoinShares shares fell below $2 during the bear market in December 2022, yet have steadfastly rebounded through 2023 and into 2024, peaking at $8.6 in February before recently dipping below $6.5.
