Crypto investors are showing a shift in sentiment towards Bitcoin-related investment products, with outflows of $13 million recorded in the past week, according to James Butterfill, an analyst at CoinShares.
This week marked the first instance of outflows for Bitcoin funds since Blackrock’s spot Bitcoin ETF filing in June. Over the past five weeks, Bitcoin had seen consistent bullish inflows, but the recent trend has changed.
In contrast, Ethereum (ETH) and XRP investment products have gained popularity among investors, recording a combined inflow of $9.2 million in the last week. Ethereum performed exceptionally well, attracting $6.6 million in inflows, while XRP funds also saw positive traction with an inflow of $2.6 million. Additionally, other altcoins like Solana and Polygon tracked inflows of $1.1 million and $0.7 million, respectively.
This shift in investment preferences coincides with Ripple’s partial victory against the United States Securities and Exchange Commission on July 13. The court ruled that XRP does not qualify as a security when sold on exchanges to the general public. As a result, XRP experienced a notable price spike of 76% to $0.83, although it later stabilized at $0.69.
Despite the recent shift in demand, Bitcoin remains the dominant digital asset investment product, with $558 million in inflows in 2023 and a total of $25.0 billion in assets under management, accounting for 67.4% of the total market share.
As of writing, BTC is priced at $29,128, reflecting a 3.1% decrease over the last 24 hours.
The past month has witnessed a surge in financial institutions filing for Bitcoin spot Exchange Traded Fund applications with the SEC. Major players such as BlackRock, ARK Invest, Fidelity, Galaxy Digital, VanEck, Valkyrie Investments, NYDIG, SkyBridge, and WisdomTree have all joined the race to offer Bitcoin ETFs, signaling growing institutional interest in the crypto market.