Why Bitcoin remains the most preferred digital asset

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Year-to-date BTC inflows have topped $500 million. The alt leader ETH has seen outflows despite the coin’s surge in value.

Inflows of digital asset investment products totaled $137 million last week, bringing the fourth straight week of inflows to $742 million, CoinShares found in a new report.

According to the digital asset investment firm, the total inflows recorded over the past month represented the largest streak of inflows since the last quarter of 2021.

Source: CoinShares

Although the average annual trading volume for investment products is around $1.4 billion, CoinShares noted that trading volumes for these products last week jumped to a total of $2.3 billion. dollars, exceeding the average by a considerable margin.

CoinShare added,

Volumes currently represent a much larger proportion of total crypto volumes, comprising 11% last week compared to the 2% average.

Investor Sentiment Favors Bitcoin

For the fourth week in a row, investors kept their focus on Bitcoin as the centerpiece saw inflows totaling $140 million last week. This represented 99% of the total entries recorded during this period. While the price of BTC trended lower after briefly hitting a two-month high of $31,693 on July 13, the centerpiece saw its inflows increase by 5% during this period.

The additional inflows of $140 million brought the major coin net inflows year-to-date to $571 million, with its assets under management (AuM) valued at $25 billion. This marked the third week that BTC had seen a net inflow since the start of the year, having been in a net outflow position of $171 million a month ago.

In contrast, short bitcoin investment products saw an outflow of $3.2 million last week, representing 12 weeks of consecutive outflows. According to CoinShares:

A combination of recent price appreciation and outflows has seen total short-term bitcoin assets under management fall from their peak of US$198 million in April to just US$55 million.

However, despite the continued decline in short bitcoin, it remained the second best performing asset in terms of inflows year-to-date at $55 million, albeit steadily declining, according to report data.

Source: CoinShares

ETH leads from behind

With an outflow of $2 million recorded during the reporting period, leading altcoin Ethereum [ETH] emerged as the asset with the most releases since the start of the year.

Source: CoinShares

While the price of alts has seen some growth over the past week, the price growth has not translated into ETH inflows, CoinShares found.

As with other altcoins, Solana [SOL]Polygon [MATIC]and Litecoin [LTC] saw minor inflows of between $0.5 million, $0.5 million, and $0.3 million, respectively.

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