Significant influx of digital asset funds
Digital asset investment products experienced significant inflows totaling $2 billion in the first week of June, according to CoinShares. This means that investor interest has increased noticeably thanks to expectations of future interest rate cuts.
Over a five-week period, inflows have now reached $4.3 billion. Exchange-traded product (ETP) trading volume also increased significantly, reaching $12.8 billion this week, up 55% from the previous week.
Bitcoin and Ethereum lead the way
Bitcoin (BTC) remained a major focus for investors, attracting $1.97 billion in inflows during the week. Ethereum (ETH) also saw significant interest, recording its best week since March with inflows totaling $69 million. This surge is due to the SEC’s unexpected decision to allow spot-based ETFs.
Local insights and market sentiment
In the United States, inflows were particularly strong, reaching $1.98 billion. The first day of the week saw the third-largest daily inflows on record, with the iShares Bitcoin ETF now surpassing Grayscale with $21 billion in assets under management (AuM).
Market sentiment appears to have changed as US macroeconomic indicators are weaker than expected, raising expectations of a monetary policy interest rate cut. This positive sentiment pushed total AuM above $100 billion for the first time since March.
Altcoins and other investment products
While Bitcoin and Ethereum dominated inflows, some altcoins also saw minimal activity. In particular, Phantom (FTM) and XRP recorded inflows of $1.4 million and $1.2 million, respectively.
For the third week in a row, there has been a total outflow of $5.3 million from Bitcoin short products. This trend suggests that interest in bearish bets on Bitcoin is waning.
Unusually, we saw inflows from almost all providers, while outflows from incumbents continued to slow. This widespread interest highlights broader positive market sentiment.
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