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  • Bitcoin ETF inflows surge, threatening gold’s reign as store-of-value

    Bitcoin ETF inflows surge, threatening gold’s reign as store-of-value

    • Bitcoin ETF inflows surge, threatening gold’s dominance.
    • Divergence in fund flows: Bitcoin gains, gold loses.
    • Bitcoin acts as a ‘risk-on’ investment and a safe-haven asset.

    In a seismic shift within the financial landscape, Bitcoin is rapidly gaining ground as a store-of-value asset, challenging its traditional counterpart, gold. Recent data reveals a substantial surge in spot Bitcoin ETF inflows, particularly in the United States, setting the stage for a potential challenge to gold’s historical dominance.

    This shift not only signals a changing tide in investment preferences but also prompts speculation about Bitcoin’s long-term disruptive potential.

    Bitcoin ETFs vs gold: the growing divergence

    The past week has witnessed an impressive surge in spot Bitcoin ETF inflows, culminating in a near 10% increase in Bitcoin’s price. Notably, the lion’s share of these new investments is pouring into US-based ETFs, reflecting the increasing importance that these funds play in shaping Bitcoin’s overall performance. Analysts suggest that this uptrend is beginning to reveal a growing divergence between global fund flows into Bitcoin and those into gold.

    The data from ETC Group demonstrates a stark contrast in the year-to-date net flows, with Bitcoin ETPs experiencing a substantial increase since the start of February. Concurrently, gold has faced net negative flows, signalling a shift in investor sentiment. BlackRock’s iShares Bitcoin ETF, securing a significant share of last week’s inflows, exemplifies this trend, underlining the rising prominence of Bitcoin in the investment landscape.

    Bitcoin’s dual role: ‘risk-on’ investment and safe-haven asset

    According to analysts, the top 14 gold ETFs have witnessed a considerable outflow of nearly $2.4 billion since the beginning of the year. 

    In stark contrast, the ten leading Bitcoin ETFs have collectively attracted a robust $3.89 billion in inflows. This trend underscores Bitcoin’s dual nature as both a ‘risk-on’ investment and a reliable safe-haven asset.

    Market experts anticipate that this trend will persist, with Bitcoin poised to disrupt gold’s role as the primary store of value over the long term. Despite Bitcoin’s current ETP and ETF market cap being dwarfed by gold’s market cap, there’s speculation that driven by price appreciation, Bitcoin could potentially surpass gold’s market cap in the next two years. While Bitcoin currently stands as the newcomer challenging gold’s reign, its growing influence is undeniable, posing a potential threat to the precious metal’s long-standing supremacy.

    As Bitcoin continues its ascent, the financial world watches with keen interest, curious to see if this disruptive force will indeed reshape the future of store-of-value assets, signalling a broader evolution in investment preferences on a global scale.

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  • Inflows into crypto products surpass $1B year-to-date

    Inflows into crypto products surpass $1B year-to-date

    • Digital asset investment products recorded inflows of $293 million last week.
    • Bitcoin saw $240 million, Ethereum $49 million and Solana $12 million.
    • A report by CoinShares shows year-to-date inflows have surpassed $1 billion.

    Inflows into digital asset investment products hit $293 million last week, the seventh consecutive week of positive flows. 

    According to data from asset manager CoinShares, the 7-week streak of inflows has brought the total year-to-date flows into crypto exchange traded products to $1.14 billion. This follows increased institutional interest that has pushed yearly inflows YTD to its third highest yearly level. 

    Meanwhile, total assets under management (AuM) in cryptocurrencies have increased 9.6% this past week.

    The weekly flows report shows total AuM stood at $44.3 billion last week, up 99% this year and at the highest level since May 2022.

    Bitcoin inflows hit $240 million last week

    In specific investment products, Bitcoin saw $240 million in inflows last week to bring the total YTD reading to $1.08 billion. ETP trading volume for the flagship cryptocurrency accounted for nearly 20% of volume on trusted exchanges.

    James Butterfill, the head of research at CoinShares, notes that the increase in ETP volume compared to BTC trading volume is a rare occurrence that “suggests ETP investors are participating much more in this rally compared to 2020/21.”

    Also notable were the inflows into Ethereum investment products.

    According to CoinShares’ weekly report, inflows of $49 million last week was the largest for Ether since August 2022. The sentiment around Ether-based ETPs has improved significantly over the past two weeks. Notably, this outlook is unfolding as spot Ethereum ETF filings spark interest.

    Solana sees huge inflows

    Solana, one of the top performing crypto assets these past few weeks, also recorded notable inflows this past week. $12 million were poured into SOL products over the seven days , while the altcoin leads the segment with $121 million in year-to-date inflows.

    The optimism is reflected in the SOL price, which had fallen dramatically in November 2022 as the market reacted to the collapse of FTX. At current levels of $59, Solana is trading 170% over the past 30 days and 315% over the past year.

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  • Short-Bitcoin funds saw $10M in inflows last week

    Short-Bitcoin funds saw $10M in inflows last week

    • CoinShares data shows crypto investment products recorded minor outflows of $2 million.
    • But Bitcoin saw a third straight week of outflows totaling $12 million.
    • Short-bitcoin funds saw inflows of $10 million amid negative sentiment driven by US economic data.

    Digital asset investment products recorded yet another week outflows this past week as macro data continued to weigh on investor sentiment, according to asset manager CoinShares.

    While weekly outflows across crypto-related products was a minor $2 million, the broader market sentiment was negative as indicated by the large inflows into short investment products.

    Short-Bitcoin inflows hit $10 million

    Investment products tied to the world’s largest cryptocurrency Bitcoin recorded a total of $12 million in outflows last week, a third consecutive week of such action. Investors also bet huge on the price of Bitcoin going down that week, with inflows into short bitcoin funds rising to $10 million.

    According to CoinShares, the negative sentiment around BTC price last week largely came from the United States.

    “Opinions remain polarised though, with the US seeing outflows totalling US$14m, where recent macro data has increased fears amongst investors that the US Federal Reserve (FED) will be more hawkish than expected,” CoinShares head of research James Butterfill wrote.

    As we highlighted, the past week was punctuated by the hot economic data (the Producer Consumer Expenditure (CPE) index that suggested inflation was still a key headwind. 

    Indeed, the market reacted negatively to the macro data, with Bitcoin price dropping to lows of $22,770 on the Bitstamp crypto exchange. However, BTC is back above $23,400.

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  • Inflows into Bitcoin products surged by $116 million last week

    Inflows into Bitcoin products surged by $116 million last week

    • Digital asset investment products saw inflows of about $117 million last week, the biggest since July 2022.
    • Bitcoin saw almost all of last week’s digital asset investment products inflows, with $116 million of the total.
    • Total assets under management (AUM) rose $28 billion, roughly 43% from inflow lows recorded in November.

    Bitcoin saw the most fund inflows this past week, with the benchmark cryptocurrency accounting for nearly all of the weekly inflows.

    According to a weekly report digital asset manager CoinShares shared on Monday, crypto asset investment products recorded inflows of $117 million. It was the biggest week for inflows across digital asset investment products since July 2022.

    Bitcoin products saw inflows of $116 million

    Bitcoin accounted for nearly $116 million of the total digital assets products inflows. And as Bitcoin price rose above $23,000, inflows into Short Bitcoin products represented $4.4 million of weekly totals. 

    In other cryptocurrencies, inflows into Ethereum were $2.3 million and $1.1 million for Solana. 

    However, multi-asset investment products saw a ninth consecutive week of outflows with $6.4 million. Binance and XRP also saw outflows of around $400,000 and $200,000 respectively.

    The spike in inflows pushed total assets under management (AUM) to over $2.8 billion, with the metric up by 43% from its November low. Investment products also saw an improvement in terms of weekly volumes.

    Per the CoinShares report, $1.3 billion was traded, up 17% compared to the year-to-date average. The volume was also higher compared to the average of 11% for the broader crypto market.

    In terms of various regions, Germany saw about 40% of the inflows for approximately $46 million, while Canada, the United States and Switzerland saw the next three largest inflow batches with $30 million, $26 million and $23 million respectively.

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  • Inflows into Bitcoin products surged by $116 last week

    Inflows into Bitcoin products surged by $116 last week

    • Digital asset investment products saw inflows of about $117 million last week, the biggest since July 2022.
    • Bitcoin saw almost all of last week’s digital asset investment products inflows, with $116 of the total.
    • Total assets under management (AUM) rose $28 billion, roughly 43% from inflow lows recorded in November.

    Bitcoin saw the most fund inflows this past week, with the benchmark cryptocurrency accounting for nearly all of the weekly inflows.

    According to a weekly report digital asset manager CoinShares shared on Monday, crypto asset investment products recorded inflows of $117 million. It was the biggest week for inflows across digital asset investment products since July 2022.

    Bitcoin products saw inflows of $116 million

    Bitcoin accounted for nearly $116 million of the total digital assets products inflows. And as Bitcoin price rose above $23,000, inflows into Short Bitcoin products represented $4.4 million of weekly totals. 

    In other cryptocurrencies, inflows into Ethereum were $2.3 million and $1.1 million for Solana. 

    However, multi-asset investment products saw a ninth consecutive week of outflows with $6.4 million. Binance and XRP also saw outflows of around $400,000 and $200,000 respectively.

    The spike in inflows pushed total assets under management (AUM) to over $2.8 billion, with the metric up by 43% from its November low. Investment products also saw an improvement in terms of weekly volumes.

    Per the CoinShares report, $1.3 billion was traded, up 17% compared to the year-to-date average. The volume was also higher compared to the average of 11% for the broader crypto market.

    In terms of various regions, Germany saw about 40% of the inflows for approximately $46 million, while Canada, the United States and Switzerland saw the next three largest inflow batches with $30 million, $26 million and $23 million respectively.

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  • Ripple (XRP/USD) witnessing increased institutional inflows

    Ripple (XRP/USD) witnessing increased institutional inflows

    • XRP accumulation intensified in the first week of the year

    • Investors bank on Ripple’s win against the SEC

    • XRP has gained stability above $0.31, and the price could surge from here

    If you have been following Ripple (XRP/USD), you already know its case with the SEC continues to be important. Investors have priced XRP depending on the direction of the case. However, the latest CoinShares report shows that institutional investors are banking heavily on a Ripple win.

    According to CoinShares, the first week of 2023 saw $3 million in inflows into XRP. On the other hand, investors exited $6.5 million and $3 million from Bitcoin and Ethereum, respectively. This could be positive news as it shows how much trust the market has developed in XRP. According to CoinShares, the inflows reflected improved clarity on Ripple’s case with the SEC. But despite this positive development, XRP-associated investment products recorded $9.7 million worth of outflows.

    From a fundamental perspective, we could argue that it is still a double-edged sword for XRP as the case drags on. There are positives to pick from the latest institutional inflow, with the settlement expected in the current first quarter. The technical outlook also supports a potential XRP accumulation of around $0.31.

    XRP gains stability above support at $0.31

    XRP/USD Chart by TradingView

    A price outlook shows XRP is pushing higher after settling and consolidating above $0.31. The momentum has improved but remains weak. The MACD indicator is yet to cross above the neutral zone.

    However, the volume indicators would be a little bit exciting. A spike in buy-side volumes suggests that buying is ongoing for XRP above $0.31. The previous bullish pin bar acts as the buffer against the bear pressure for XRP.

    Will XRP become bullish?

    XRP has a chance to become bullish if the price holds steady at the current level. The upside is likely to continue in the short and medium term to the $0.4 resistance. The ongoing case with the SEC will determine if XRP price sustains the recoveries.

    Where to buy XRP

    eToro

    eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.


    Buy XRP with eToro today

    Binance

    Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.

    Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.


    Buy XRP with Binance today

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