A recent report by CoinShares has revealed a significant inflow of $441 million into digital asset investment products over the past week. This surge is attributed to the weakness in Bitcoin prices, activity from Mt. Gox, and a sell-off by the German government.
Bitcoin attracted the majority of the inflows, totaling $398 million. The report highlights that the dip in Bitcoin prices, coupled with notable activity from the defunct Japanese crypto exchange Mt. Gox and selling pressure from the German government, spurred investors to buy.
Geographic Distribution
The United States led the inflows with $384 million, followed by Hong Kong with $32 million, Switzerland with $24 million, and Canada with $12 million. In contrast, Germany experienced outflows amounting to $23 million.
Mt. Gox, once a prominent crypto exchange, moved over 47,000 BTC, worth approximately $2.7 billion, to an unknown wallet as part of its creditor repayment process. Repayments began on July 5 in both Bitcoin and Bitcoin Cash through designated cryptocurrency exchanges, as outlined in its rehabilitation plan. Analysts speculate that many creditors might sell their Bitcoin, given its significant value increase since the exchange’s collapse.
German Government’s Bitcoin Sell-Off
During the same week, the German government transferred 3,000 BTC, valued at around $172 million, to various crypto exchanges and an unknown wallet, adding to the selling pressure.
While Bitcoin dominated the inflows, other altcoins also saw significant investments. Solana led the altcoins with $16 million in inflows, making it the best-performing altcoin of the week and bringing its year-to-date total to $57 million. Ether saw inflows of $10 million.
Political Support
In a related development, the Sentinel Action Fund doubled its donations in Solana to a pro-crypto political action committee, supporting four pro-crypto U.S. Senate candidates.
The CoinShares report underscores the resilience and continued interest in digital assets despite market fluctuations. The inflows into Bitcoin and altcoins like Solana and Ether highlight investor confidence and the evolving dynamics of the cryptocurrency market.
