According to the latest report from CoinShares, global cryptocurrency investment products from asset managers such as Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares, and 21Shares saw a combined net inflow of $1.44 billion last week.
This figure is one of the largest weekly net inflows ever recorded, and brings the year-to-date figure to a record $17.8 billion, as digital asset investment products see additional buying amid price weakness, CoinShares research director James Butterfill wrote. This far surpasses the $10.6 billion net inflows seen during the bull market in 2021.
However, Butterfill noted that cryptocurrency exchange-traded products (ETPs) volume has been well below the average weekly volume of $21 billion this year, generating just $8.9 million last week, reflecting seasonal patterns that see volumes drop during the summer months.
Not surprisingly, Bitcoin Bitcoin
+4.12%
-Based funds were the overwhelming winners with net inflows of $1.35 billion, while short-dated Bitcoin products recorded their largest weekly net outflows since April, totaling $8.6 million. U.S. spot Bitcoin exchange-traded funds saw inflows of $1.05 billion last week alone, with total net inflows rising for the sixth straight day since their launch in January. A record $15.8 billion.
Butterfill said he believes the weakness in price due to the German government’s Bitcoin sell-off and the reversal in sentiment due to the lower-than-expected U.S. CPI have prompted investors to increase their positions.
‘Trump Pump’
Bitcoin prices have struggled in recent weeks amid concerns over the German government’s sale of seized bitcoins and the Mt. Gox payout. However, the cryptocurrency has surged in the past week, up more than 10% and up 4% over the past day, according to The Block’s Bitcoin price page, following a failed assassination attempt on former U.S. President Donald Trump, who supports bitcoin.
Ethereum Ethereum
+4.41%
Butterfill also noted that last week saw $72 million in net inflows, the largest since March, likely driven by anticipation of a US spot ETF launch.
The U.S. Securities and Exchange Commission approved eight Form 19b-4 filings for spot Ethereum ETFs on May 23 from BlackRock, Fidelity, Bitwise, VanEck, Ark Invest, Invesco, Franklin Templeton, and Grayscale.
However, the issuer must have a valid S-1 registration statement before trading can begin, which will likely begin this week.
By region, US-based funds led the way with net inflows of $1.3 billion, followed by Swiss, Hong Kong, and Canada-based crypto investment products with net inflows of $58 million, $55 million, and $24 million, respectively.
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