FX.co ★ Crypto fund inflows extended to 10 weeks, Fear/Greed index at highest level

Capital inflow into digital asset investment products continued for another week, albeit at a slower pace than a week ago. According to CoinShares data, capital inflow increased by $1.76 billion in the past week, marking the eleventh consecutive week of net capital inflow. This is the longest inflow streak since October 2021, when the first Bitcoin futures-based ETF was launched in the United States.

James Butterfill, CoinShares head of research, stated that the $1.76 billion of inflows represents 4% of the total investment volume, which has increased by 107% this year.

Despite more than doubling to $46.22 billion, the current volume remains significantly below the historical peak of $86.6 billion recorded in 2021. Canada saw the largest percentage of inflows, with $79 million. Products registered in Germany received an inflow of $57 million, while products registered in the United States saw a growth of $54 million.

The report noted a minor capital outflow from Hong Kong totaling $15 million. However, Bitcoin remains a focal point for investors in Asia, with an inflow of $133 million.

The capital inflow observed last week, amounting to $3.6 million after a three-week outflow, suggests that a Bitcoin pullback may occur after its rise since mid-October.

Capital inflow into Ethereum has continued for five weeks, increasing by $134 million. Net flows are now $10 million in the positive for the first time this year, following an extended period of negative sentiment.

Solana saw an inflow of $4.3 million, bringing its total to $143 million since the beginning of the year.

According to the Crypto Fear & Greed index, sentiment is currently in the greed territory, registering at 74 out of 100, the highest level since November 2021, when Bitcoin reached a record high of $68,790.