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Digital Assets: US Government Quagmire and Treasure Prices Fuel $21M Crypto-Asset Inflows, According to CoinShares

US Government Dysfunction and Treasury Prices Fuel $21 Million Inflows, CoinShares Reports

According to a recent update from CoinShares, the digital asset firm, the recent quagmire in the US government and treasury prices have contributed to inflows totaling $21 million. This comes as digital asset investment products saw inflows for the first time in six weeks.

CoinShares believes that the inflows are in response to a combination of positive price momentum, concerns over US government debt prices, and the recent government funding issues. Solana, in particular, continues to perform well with inflows of $5 million, marking its 27th week of inflows and only four weeks of outflows this year.

James Butterfill from CoinShares highlighted that digital asset investment products saw consistent inflows this past week, a positive shift after six weeks of outflows. The inflows came later in the week, most notably on Friday, possibly as a result of the positive price momentum, concerns over US government debt prices, and the government’s recent funding challenges.

Although the recent price increase is encouraging, both the investment product market and the broader crypto market continue to experience low volumes. Regional differences persist, with the US seeing outflows of $19 million last week, whereas Europe and Canada experienced inflows of $23 million and $17 million, respectively.

Bitcoin accounted for the majority of the inflows, totaling $20 million, while short-bitcoin products saw outflows of $1.5 million, bringing outflows since April to $85 million. The altcoin market remains relatively inactive, with Solana being a standout performer, attracting inflows of $5 million and demonstrating its popularity as the most loved altcoin this year.

On the other hand, Ethereum saw outflows for the seventh consecutive week, totaling $1.5 million, making it the least loved altcoin. Additionally, there were outflows of $8.4 million in blockchain equities, aligning with a broader sell-off in the technology sector.

CoinShares recently announced the launch of its CoinShares Hedge Fund Solutions division, aimed at bridging the gap between traditional institutional investors and the digital asset space. For the first time, qualified US investors will have access to CoinShares’ private investment products through this division. Led by industry veteran Lewis Fellas, who brings 23 years of experience (including seven in digital assets), the division will leverage CoinShares’ expertise in trading and quantitative analysis to develop premium products tailored to institutional investors.

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