The week spanning from August 5 to 11 witnessed a positive turnaround in the realm of cryptocurrency investment products, with an influx of $28.5 million compared to the $107 million outflow registered the previous week, according to insights shared by CoinShares analysts.
This reversal marks a notable departure from the negative trajectory that persisted for three consecutive weeks.
Experts attribute this shift to a diminishing possibility of the Federal Reserve implementing a key interest rate hike in September, influenced by recent inflation data.
The lion’s share of this inflow found its way into Bitcoin funds, amounting to $27 million. This influx goes some way in offsetting the unprecedented outflow of $111 million noted the preceding week—a figure that hadn’t been witnessed since March.
In a different trajectory, investment vehicles allowing for short positions in the primary cryptocurrency experienced renewed downward trends, with investors withdrawing $2.7 million after a period of stagnant movement during the last reporting cycle.
Meanwhile, Ethereum funds showed a positive inflow of $2.5 million, countering the $5.9 million outflow seen in the previous week.
Positive momentum also extended to products based on alternative coins, spanning from a $0.1 million influx in LTC to $0.7 million in Uniswap.
Interestingly, the 16-week streak of inflow into XRP products remains unbroken, resulting in a 127% growth in their Assets Under Management (AUM) since the start of this year.
It’s worth recollecting that Blockstream’s CEO, Adam Back, predicted a surge in Bitcoin’s value to $100,000 before the next halving.
In a related context, Bloomberg analyst James Seyffart has raised the odds of approval for a digital gold-backed Exchange-Traded Fund (ETF) to 65%.