Bitcoin drives digital asset inflows for the first time in 6 weeks: Report

Cryptocurrency assets experienced inflows for the first time in six weeks from Sept. 22 to 28, according to the latest Digital Asset Fund Flows Weekly Report from European digital assets management firm CoinShares.

Bitcoin (BTC) was the biggest gainer, with inflows in the amount of $20.4 million for the week.

Good week, everyone. Here are the latest #FundFlows and observations by CoinShares Head of Research @JButterfill.
This week inflows: US$21m (after 6 weeks of outflows)
We believe these inflows are a reaction to a combination of positive price momentum, fears over US… pic.twitter.com/0VHHBh1n50

— CoinShares (@CoinSharesCo) October 2, 2023

Solana’s SOL (SOL) took second, with $5 million, as the only other asset to show inflows. Per CoinShares, this is its 27th week of inflows, with only four weeks of outflows for 2023, making it “the most loved altcoin this year.”

On the flip side, Ether (ETH) experienced outflows in the amount of $1.5 million. This marks its seventh consecutive week of outflows and, according to CoinShares, solidifies its status as “the least loved altcoin.”

Related: CoinShares says US not lagging in crypto adoption and regulation

Flows for other altcoins, including XRP (XRP) — which saw more inflows than Solana during the previous week — were negative and minimal.

CoinShares analysts attributed the lack of altcoin movement alongside Bitcoin’s trend-breaking momentum to a combination of factors:

“We believe the inflows are a reaction to a combination of positive price momentum, fears over US government debt prices and the recent quagmire over government funding.”

The quagmire referenced by CoinShares involves the ongoing negotiations over U.S. government funding. Earlier in the previous week’s cycle, fears over a funding bill stalemate led to predictions that the U.S. government would shut down on Oct. 2. However, a last-minute effort by Senate leaders allowed for the passage of a stopgap that ensures funding through Nov. 17. Whether Congress and the president can come to terms to fund the government beyond the current measure’s expiration remains to be seen.

Geographically, Germany, Canada and Switzerland led the charge for the week, with inflows amounting to $17.7 million, $17.2 million and $7.4 million, respectively. Australia and France held the line, metaphorically speaking, with $100,000 for the former and zero for the latter.

The United States, however, registered $18.5 million in outflows, with Sweden and Brazil following suit at $1.8 million and $900,000 outgoing, respectively.