Bitcoin-related investment products have seen a decline in interest among crypto investors, experiencing outflows for the first time since Blackrock’s filing for spot Bitcoin ETF in June, according to a report by CoinShares’ head of research, James Butterfill. In the week ending on July 21, Bitcoin investment products witnessed outflows of $13 million, reversing the trend of five consecutive weeks of inflows. Additionally, short Bitcoin products also faced outflows of $5.5 million during the same week.
In contrast, Ethereum (ETH) and XRP investment products displayed combined inflows of $9.2 million over the past week. Butterfill highlighted that Ethereum investment products performed the best, attracting inflows of $6.6 million, while XRP funds recorded an inflow of $2.6 million. Other altcoins like Solana (SOL) and Polygon (MATIC) also saw inflows of $1.1 million and $0.7 million, respectively.
The change in market sentiment may be linked to Ripple’s recent legal victory against the United States Securities and Exchange Commission (SEC). On July 13, the court ruled that XRP is not a security when sold on exchanges to the general public. The news caused XRP’s price to surge by 76% to $0.83 before settling at $0.69 at the time of writing.
Despite the decline in investor interest, Bitcoin remains the dominant digital asset investment product, with $558 million in inflows so far in 2023 and a total of $25.0 billion in assets under management, accounting for 67.4% of the total market share. As of now, BTC is priced at $29,128, representing a decrease of 3.1% over the past 24 hours.
In the past month, several financial institutions have submitted applications for Bitcoin spot Exchange Traded Funds (ETFs) with the SEC, indicating growing interest in the cryptocurrency. Notable entities include BlackRock, ARK Invest, Fidelity, Galaxy Digital, VanEck, Valkyrie Investments, NYDIG, SkyBridge, and WisdomTree.
The decline in Bitcoin-related investment products and the increasing interest in other cryptocurrencies suggest a shift in investor preferences within the crypto market. While Bitcoin remains dominant, altcoins like Ethereum and XRP are gaining traction, potentially indicating a broader diversification of investment strategies among crypto investors. The market will continue to monitor these trends and assess their impact on the overall cryptocurrency landscape.