According to the latest weekly digital asset flow report from European digital asset management company CoinShares, during the week from September 22 to 28, cryptocurrency assets experienced their first inflow in six weeks.
Bitcoin was the biggest gainer, with inflows of $20.4 million for the week.
Hello everyone, and a good week.This is the latest #Cash flow and observations from CoinShares’ Head of Research @JButterfill.
Inflows this week: $21 million (after 6 weeks of outflows)
We believe these inflows are a response to a combination of positive price momentum, concerns about the U.S.… pic.twitter.com/0VHHBh1n50
— CoinShares (@CoinSharesCo) October 2, 2023
Solana ranked second with $5 million and was the only other asset to show inflows. This is the 27th week of inflows in 2023, with only 4 weeks of outflows, making it “the most popular altcoin of the year,” according to CoinShares.
Ethereum, on the other hand, experienced $1.5 million in outflows. According to CoinShares, this marks the seventh consecutive week of outflows, cementing its status as the “least popular altcoin.”
related: CoinShares Says U.S. Not Behind on Cryptocurrency Adoption and Regulation
Flows for other altcoins, including XRP, were negative and small after surpassing Solana in inflows last week.
CoinShares Analyst Attributed to The lack of altcoin action and momentum in Bitcoin’s breakout trend is caused by a number of factors:
“We believe the inflows are a response to a combination of positive price momentum, concerns about U.S. government debt prices, and recent government funding woes.”
The quagmire cited by CoinShares involves Ongoing Negotiations on U.S. government funding. Earlier in last week’s cycle, concerns about Republican gridlock led to predictions of a U.S. government shutdown on October 2. However, a last-minute effort by Senate leaders allowed a stopgap measure to be passed on November 17 to secure funding. It remains to be seen whether Congress and the president can reach a deal to fund the government after current measures expire.
Geographically, Germany, Canada and Switzerland led the week in inflows, with $17.7 million, $17.2 million and $7.4 million respectively. For example, Australia and France are holding their ground, with the former investing $100,000 and the latter investing zero.
The United States hindered inflows to Europe and Canada, with outflows of $18.5 million, followed closely by Sweden and Brazil, with outflows of $1.8 and $0.9 respectively.
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