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According to a report by market intelligence provider CoinShares, inflows into crypto investment products have increased for six consecutive weeks to a value of $500 million.
The report said:
“Digital asset investment products saw inflows of US$3 million last week, marking the sixth consecutive week of inflows totaling US$529 million. , which represents 1.7% of total assets under management (AuM).”
CoinShares noted that money has continued to be pumped into the market despite the downturn seen since Q2 2022. The FOMO effect from Ethereum’s The Merge event also resonated with the overall trend, causing cash flow focuses mainly on the Ethereum network ecosystem. The report also indicates that:
“Ethereum has seen inflows totaling US$16 million for the 7th consecutive week with a total value of US$159 million. We believe this change is due to the fact that The Merge is getting closer and closer.”
The Ether network-wide consolidation scheduled for September 19 will change the current proof-of-work (PoW) form to a proof-of-stake (PoS) consensus mechanism. This is the biggest software upgrade in the Ethereum ecosystem.
The US multinational investment bank, Citi, believes that the consolidation will make Ethereum a “profitable asset”. On the other hand, CoinShares noted that despite improving sentiment in the crypto market, trading volumes remained low over the past week at $1.1 billion compared to the weekly average of $2. $4 billion year to date.
“Bitcoin sees very small inflows totaling US$8.5 million while Bitcoin short-term investment products see record inflows totaling US$7.5 million in second week in a row. This shows that investors believe that the price of Bitcoin will continue to fall and many investors have lost confidence in the asset.”
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