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(Kitco News) - The news that XRP was deemed not a security in the ongoing case between the Securities and Exchange Commission (SEC) and Ripple Labs helped extend the positive streak of inflows into digital asset investment products for a fourth consecutive week, with $137 million flowing into these products the week ending July 14.
According to the latest Digital Asset Fund Flows weekly report from CoinShares, inflows for the last 4 weeks now total $742 million, which represents the largest run of inflows since the final quarter of 2021.
Weekly crypto asset flows (US$m). Source: CoinShares
Bitcoin (BTC) continues to be the primary focus for investors with $140 million flowing into BTC-related long products last week. Short Bitcoin products saw their 12th week of outflows with $3.2 million exiting these products.
Flows by asset (US$m). Source: CoinShares
Data from CoinShares shows that Bitcoin accounted for 99% of all inflows. The other assets listed saw inflows of less than $600,000, and Ether-related products saw outflows of $1.6 million. Despite the news for XRP, products related to the token only saw inflows of $100,000, bringing the yearly total to $7 million.
ProShares Bitcoin Strategy ETF was the most popular investment vehicle, with $109 million worth of inflows last week, followed by the Purpose Bitcoin ETF with $19.7 million worth of inflows.
Flows by provider (US$m). Source: CoinShares
“Regionally, the inflows were focussed almost solely on North America, with inflows of US$109m and US$28m in the US and Canada respectively,” James Butterfill, head of research for CoinShares wrote. “Minor outflows were seen in Europe with the exception of minor inflows in Switzerland.”
Trading volumes on investment products totaled $2.3 billion, which is well above the yearly average of $1.4 billion. “The volumes are currently making up a far greater proportion of total crypto volumes, comprising 11% last week compared to the 2% average,” Butterfill said.
While BTC continues to lead the way when it comes to inflows into investment products, its growth within the broader cryptocurrency landscape has stalled as evidenced by the sideways movement of Bitcoin dominance.
Bitcoin dominance. Source: TradingView
After hitting a peak of 52.2% on June 28, Bitcoin dominance has pulled back to 50%, with multiple tests of the resistance there hinting that further declines may be in order as cryptocurrency traders begin to rotate into the altcoins.
Proof of this rotation can be seen in the total cryptocurrency market capitalization, which has increased from $1.12 trillion on June 28 when Bitcoin dominance peaked to its current value of $1.16 trillion.
Total cryptocurrency market capitalization. Source: TradingView
Out of the top 200 tokens, the biggest gainers over the past week have been XRP, Synthetix (SNX), and Stellar (XLM), with increases of 58.3%, 30.9%, and 26.9%, respectively. XRP’s 24-hour trading volume surged from an average of $700 million before the ruling to a high of $14.24 billion on Friday and currently stands at $2.75 billion.
The momentum generated by the XRP decision combined with the multiple spot BTC ETF fillings has lifted the Fear & Greed index for the crypto market into “Greed” territory after being “Neutral” in June.
Fear & Greed Index. Source: Alternative
