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Ethereum, Ripple better than Bitcoin
Bitcoin-related investment offerings seem to be losing their luster following a period of consistent inflows since Blackrock's filing for a spot Bitcoin ETF in June. As per research conducted by CoinShares' James Butterfill, there were outflows worth $13 million from Bitcoin investment products in the week ending July 21. This marks a break from five consecutive weeks of inflows.
Shift in Investor Interest
Investment products associated with Bitcoin's short trades also didn't perform well, registering outflows of $5.5 million over the same week. Meanwhile, investment offerings tied to Ether (ETH), XRP, Solana (SOL), and Polygon (MATIC) saw a collective rise in investments. Inflows into Ether and XRP combined hit $9.2 million.
Performing best for the week was Ether, with inflows of $6.6 million into its investment products. XRP funds also saw healthy inflows worth $2.6 million. Altcoins Solana and Polygon witnessed much more modest inflows at $1.1 million and $0.7 million respectively.
Impact of Ripple's Courtroom Success
The significant change in investment patterns followed Ripple’s partially successful legal battle with the United States Securities and Exchange Commission on July 13. The court decided that XRP does not qualify as a security when sold to the general public via exchanges. Subsequent to this legal triumph, XRP's price soared by 76% to around $0.83, although it has since settled to around $0.69.
Bitcoin's Dominance in the Investment Landscape
Despite these shifts, Bitcoin still claims the top spot as the most invested digital asset. With inflows of $558 million in 2023 and $25.0 billion in assets under management, Bitcoin represents 67.4% of the total market share. However, its current price hovers just above $29,128, indicating a 3.1% decrease over the last 24 hours.
In the past month, an increasing number of financial institutions have applied for Bitcoin spot Exchange Traded Fund approvals from the SEC. This surge in applications, which began in mid-June, includes prominent institutions such as BlackRock, ARK Invest, Fidelity, Galaxy Digital, VanEck, Valkyrie Investments, NYDIG, SkyBridge, and WisdomTree.
