Top 5 Insights from Coinshares’ $767M Inflows for BTC ETH & Others

Bitcoin, Ethereum and Other Crypto Funds Nab $767 Million In Just 6 Weeks: Coinshares

According to the latest Coinshares report, there has been a significant 767M Dollars Inflows for BTC ETH, and other cryptocurrencies, marking a substantial investment surge. This influx highlights growing investor confidence in the crypto market, potentially signaling a bullish trend for Bitcoin, Ethereum, and other digital assets. Understanding the implications of these inflows is crucial for market participants looking to capitalize on emerging opportunities.

According to the latest Coinshares report, digital asset investment products recorded net inflows for the sixth consecutive week. Specifically, we saw $261 million of net inflows last week, bringing the total inflows over the past six consecutive weeks to $767 million. 

This has surpassed all of 2022’s $736 million inflows. 

CoinShares Head of Research James Butterfill stated, 

“Although similar in magnitude to inflows we saw in June, it wasn’t for a sustained period of six weeks like it is this time around. It’s the longest streak of inflows since early 2022.” 

Institutions have contributed $847 million so far this year, according to CoinShares. 

Coinciding with Bitcoin’s climb to $35,000 in anticipation of a spot Bitcoin ETF, last week’s inflows of $261 million followed $326 million from the week before. 

Without question, Bitcoin was the largest recipient of weekly inflows by asset at $229 million, followed by Ethereum at $17.5 million, and Solana at $11 million. Other altcoins, like Ripple (XRP) and Cardano, saw flows of $200,000 and %500,000, respectively. 

“U.S. investors are beginning to participate,” CoinShares reported, noting that American investors allocated $157 million last week – the most active group among any other region. 

So far, they’ve contributed $493 million this year, according to CoinShares. 

After the United States, investors in Germany built on annual flows of $301 million by $63 million, and Swiss investors added $36 million to their total to $255 million. 

Meanwhile, outflows in Sweden grew from $2.6 million to $94 million annually. 

While Ethereum has seen outflows of $107 million this year, the second-largest cryptocurrency by market capitalization saw notable inflows last week. Notching a fresh $17.5 million, it was Ethereum’s steepest pace of inflows since August of last year.

Kraken Said To Seek Partner To Help Build Its Layer 2 Blockchain Network

According to a CoinDesk report, U.S. crypto exchange Kraken is considering several of the leading blockchain technology firms to help launch its own layer 2 network. Notably, the move seems to follow the lead of rival exchange COinbase which launched ‘Base’, its layer 2 in February of this year. 

The list of potential partners being considered includes Polygon, Matter Labs and Nil Foundation among others. 

Such a move would bring Kraken in line with the move earlier this year by rival Coinbase to launch its own layer-2 network. 

“We’re always looking to identify and solve for new industry challenges and opportunities,” a Kraken spokesperson said. “We don’t have anything further to share at this time.” 

Major crypto companies with established brands and customer followings have been seeking to grow their presence as blockchain builders, either as a potential source of new revenue or simply as an extension of their current operations. 

In August, crypto exchange Coinbase released its own layer 2 network, Base, which makes use of the OP Stack, from the OP Labs team that built Optimism, the second-biggest layer-2 network atop the Ethereum blockchain. 

Polygon, a leading developer of Ethereum scaling solutions with its Polygon PoS network and more recently the Polygon zkEVM, earlier this year came out with a new software toolkit that developers can use to spin up their own blockchains. 

Matter Labs, the developer behind the zkSync layer-2 network, also offers its technology to upstart builders. 

Kraken recently added a job posting on the careers section of its website, advertising for a “Senior Cryptography Engineer” with “knowledge of moder cryptography (including ZK proofs)” whose opportunities could include “deisgn and implementation of layer-2 solutions.” 

“We are enthusiastic about open source, layer-2 technologies, zero-knowledge proofs, multi-party computation, and continuously strive to explore the potential of on-chain scaling solutions,” the job description reads. “The team has recently embarked on exploring how more protocols and decentralized applications can be integrated into Kraken.”

European Crypto Tax Platform Blockpit Acquires Rival Accointing For ‘Multi-Million’ Dollars

Austria-based crypto tax software provider Blockpit has reportedly acquired Accointing from Glassnode in a multimillion-dollar cash deal with no share swap. 

A Glassnode representative stated, 

“Glassnode will exit the crypto tax space with the sale of Accointing to Blockpit. We have used the last months to reshape our infrastructure, enabling our move into DeFi data solutions and expansions into other digital asset ecosystem areas in the future. After having built the leading on-chain data platform for Bitcoin and Ethereum, we are currently expanding our product offering into DeFi. Our aim is to equip institutions with DeFi data and tools that help them to trade in and navigate the DeFi space.” 

The acquisition comes ahead of new crypto tax laws in the European Union. Last month, the European Parliament passed the new rules, known as the Eighth Directive on Administrative Cooperation (DAC8). 

These rules compel crypto companies to report customer holdings information, which will automatically be shared between tax authorities. EU member states have until December 31, 2025 to implement the rules before they officially take effect on January 1, 2026. 

“DAC8 in the EU and CARF on a global scale DAC8 covers a wide range of digital assets, including stablecoins, NFTs, DeFi tokens, as well as proceeds from crypto staking. The rules complement the EU’s Markets in Crypto Assets Regulation (MiCA) and align closely with the Organisation for Economic Cooperation and Development’s (OCED’s) Crypto-Asset Reporting Framework (CARF). 

Max Bernt, chief legal officer at Blockpit, said, 

“DAC8 in the EU and CARF on a global scale bring about a paradigm shift in crypto tax reporting: from now on, tax reporting obligations no longer lie solely with individuals, but also with service providers. This considerably increases tax transparency, as data on crypto traders and their transactions will be shared with tax authorities. It is, therefore, not surprising that the topic of crypto taxes is becoming more and more important in the public eye and now ranks alongside AML/CFT and Sanctions in terms of its significance.” 

Founded in 2017, Blockpit also acquired rival Cryptotax in 2020 for an undisclosed sum. But in terms of deal size, Accounting is “a magnitude bigger.” 

The Accointing acquisition positions Blockpit as a significant player in the European crypto tax landscape, next to TaxBit and CoinTracker in the U.S.

The recent report from Coinshares, revealing 767M Dollars Inflows for BTC ETH, and other cryptocurrencies, has generated significant buzz in the financial markets. These inflows indicate a renewed interest in digital assets, suggesting that both institutional and retail investors are becoming more optimistic about the future of cryptocurrencies. The substantial $767M inflows for BTC and ETH, in particular, underscore the dominant position these cryptocurrencies hold in the market.

As investors seek diversification and higher returns, the 767M Dollars Inflows for BTC ETH highlight the growing acceptance of cryptocurrencies as a legitimate asset class. The inflows reported by Coinshares reflect a broader trend of increasing capital allocation to digital assets. This trend is driven by various factors, including the search for inflation hedges, the potential for high returns, and the increasing integration of blockchain technology into various sectors.

The impact of these 767M Dollars Inflows for BTC ETH extends beyond the immediate market dynamics. They signal a potential shift in the investment landscape, where cryptocurrencies are not only seen as speculative assets but also as strategic components of diversified portfolios. The inflows could lead to enhanced market stability and liquidity, attracting even more investors to the space.

However, the 767M Dollars Inflows for BTC ETH also raise questions about market sustainability and potential regulatory responses. As more capital flows into cryptocurrencies, regulators may increase scrutiny to ensure market integrity and investor protection. Understanding these regulatory dynamics will be essential for investors navigating the evolving crypto landscape.

In conclusion, the 767M Dollars Inflows for BTC ETH, and other cryptocurrencies reported by Coinshares are a significant development in the digital asset market. These inflows reflect growing investor confidence and highlight the potential for further growth and integration of cryptocurrencies into mainstream financial systems. Keeping abreast of these trends and their implications will be crucial for anyone involved in the cryptocurrency market.