After a slow April, the first week of May was indeed a good week. In addition to price action, digital asset investment products also showed trends.
According to CoinShares’ weekly report, $857.9 million was invested in crypto investment products, marking the sixth consecutive week of inflows. This week also saw the largest weekly inflow since April 24.
The general market sentiment
This happened at a time when the global cryptocurrency market cap was changing hands between $2.61 trillion and $2.66 trillion. At the same time, the Crypto Fear and Greed Index fluctuated between the ‘Fear’ and ‘Neutral’ zones.
Although Bitcoin [BTC] managed to stay above the $76,000 mark, it was still unable to break past the $80,000 price level last week. However, at the time of writing, Bitcoin was trading around $81,135.86, having risen more than 11% in the past week.
Meanwhile, total assets under management rose to $160 billion, up from $155 billion the week before.
Winners and losers of the past week
As expected, Bitcoin accounted for the majority of inflows last week, with inflows of $706.1 million, bringing total inflows for the year to date to $4.9 billion.
However, the largest weekly outflow this year was $14.4 million, coming from short bitcoin products. On the altcoin market, Ethereum [ETH] there were inflows of $77.1 million, which offset the outflows of $81.6 million the previous week.
Moreover, both Solana [SOL] and Ripple [XRP] saw a significant acceleration in recent activity, with $47.6 million and $39.6 million respectively.
What was behind this?
That said, the market experienced such positive momentum when the final compromise in the CLARITY Act negotiations was reached.
For those who don’t know, a joint statement from Republican Senator Thom Tillis and Democrat Angela Alsobrooks was released last week indicating that the deal is nearing completion.
With the Senate Banking Committee and Senator Tim Scott also putting the CLARITY Act up for a vote on May 14, it remains to be seen what comes next.
Final summary
- The digital asset investment product has seen its sixth consecutive week of inflows.
- The CLARITY Act was the biggest catalyst behind this positive momentum.