Bitcoin drives digital asset yield for first time in 6 weeks: Report
Digital asset investment products saw inflows for the first time in six weeks between September 22 and 28, according to the new digital asset fund flow weekly report from European digital asset management company CoinShares.
Investment products linked to Bitcoin (BTC) were the biggest gainers with $20.4 million in revenue for the week.
Have a great week everyone. Here are the latest #FundFlows and observations by CoinShares Head of Research @JButterfill.
Earnings this week: US$21m (after 6 weeks of streaming)
We believe these gains are in response to a combination of positive price momentum and fears over US… pic.twitter.com/0VHHBh1n50
— CoinShares (@CoinSharesCo) October 2, 2023
Solana (SOL) is ranked second with $5 million in investment product flows, the only property to show income. At CoinShares, this is the 27th week of earnings flow, out of only four weeks for 2023, making it “the most popular altcoin this year.”
On the downside, Ether (ETH) products experienced an outflow of $1.5 million. This marks the seventh consecutive week of outflows and, according to CoinShares, solidifies its status as the “most loved altcoin.”
Related: CoinShares Says US Not Lagging in Crypto Adoption and Regulation
Flows for other altcoin investment products, including XRP (XRP) — which saw more inflows than Solana last week — were negative and small.
CoinShares analysts cite a combination of reasons for the lack of altcoin activity alongside Bitcoin's trend-breaking process.
“We believe the flow is a response to positive inflation, fear of US government debt prices and the recent crisis in government funding.”
The quagmire cited by CoinShares involves ongoing negotiations over US government funding. Earlier in the cycle last week, fears over the funding bill led to speculation that the US government would shut down on October 2.
However, a last-minute effort by Senate leaders allowed a stopgap to pass that would have guaranteed funding until Nov. 17. It remains to be seen whether Congress and the president will be able to reach an agreement to support the government beyond the expiration of the current measure.
Geographically, Germany, Canada, and Switzerland led the week's payouts, with digital asset investment products bringing in $17.7 million, $17.2 million, and $7.4 million, respectively. Figuratively speaking, Australia and France held the line with $100,000 for the former and zero for the latter.
The United States, however, recorded $18.5 million in outgoings, followed by Sweden and Brazil with $1.8 million and $900,000 respectively.
