According to a report by CoinShares Head of Research, James Butterfill, Bitcoin-related investment products experienced their first week of outflows since Blackrock filed for a spot Bitcoin ETF in June. The week ending on July 21 saw Bitcoin investment products recording outflows of $13 million, marking a reversal of five consecutive weeks of inflows. Short Bitcoin products also witnessed outflows of $5.5 million during the same week.
In contrast, investment products related to Ether and XRP recorded a combined inflow of $9.2 million during the same period. Ether investment products were the best performer, attracting inflows of $6.6 million, while XRP funds received an inflow of $2.6 million. Other altcoins like Solana and Polygon also tracked inflows of $1.1 million and $0.7 million, respectively.
This shift in investor sentiment towards Bitcoin-related products comes after Ripple’s partial victory against the United States Securities and Exchange Commission (SEC) on July 13. The court ruled that XRP is not considered a security when sold on exchanges to the general public, leading to a significant price spike for XRP, which surged 76% to $0.83 before cooling down to $0.69.
Despite the recent outflows, Bitcoin remains the dominant digital asset investment product, attracting $558 million in inflows so far in 2023 and boasting a total of $25.0 billion in assets under management, accounting for 67.4% of the total market share.
As financial institutions continue to show interest in Bitcoin, numerous spot Exchange Traded Fund (ETF) applications have been filed with the SEC since mid-June by companies such as BlackRock, ARK Invest, Fidelity, Galaxy Digital, VanEck, Valkyrie Investments, NYDIG, SkyBridge, and WisdomTree. The competition in the ETF space indicates growing institutional interest in Bitcoin and cryptocurrencies. However, recent market fluctuations have resulted in Bitcoin’s current price of $29,128, representing a 3.1% drop over the last 24 hours.
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