Crypto Investment Products See a Surge in Net Inflows, Totaling $1.44B

Last week, global crypto investment products saw a surge in net inflows, totaling $1.44 billion. This data comes from CoinShares' latest report.

Global crypto investment products experienced a massive surge in net inflows last week, with a total of $1.44 billion, according to the latest report by CoinShares. Major asset managers, including Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares, and 21Shares, contributed to this growth.

This influx marks one of the largest weekly net inflows on record. Year-to-date figures now stand at $17.8 billion, far exceeding the $10.6 billion net inflows during 2021’s bull run, as noted by James Butterfill, CoinShares’ Head of Research.

However, trading volumes across crypto exchange-traded products remained low. Last week, volumes hit just $8.9 million, which is significantly lower than the $21 billion weekly average for the year. According to Butterfill, this dip is part of a seasonal pattern, typically observed during the summer months.

Bitcoin-based funds led the charge with $1.35 billion in net inflows. Notably, short-Bitcoin products saw the largest net outflows since April, totaling $8.6 million. U.S. spot Bitcoin ETFs alone brought in $1.05 billion last week. Since their launch in January, these funds have seen a total net inflows of $15.8 billion.

Two factors that may have contributed to this activity, as suggested by Butterfill, are the price weakness due to the German government’s Bitcoin sales and a change in sentiment driven by lower-than-expected U.S. CPI figures, which investors saw as an opportunity to increase their positions.

Bitcoin’s price has faced challenges recently, with the German government’s sales of seized Bitcoins and concerns over Mt. Gox payouts. However, Bitcoin is up over 10% in the past week and 4% over the past day. This rise follows a failed assassination attempt on pro-Bitcoin former U.S. President Donald Trump.

Ethereum products also saw substantial inflows, adding $72 million last week. According to Butterfill, this was likely in anticipation of U.S. spot ETF launches. On May 23, the SEC approved eight 19b-4 forms for spot Ethereum ETFs from major players like BlackRock, Fidelity, and Grayscale. It's worth noting that trading will only begin once the S-1 registration statements become effective, which could happen this week.

Regionally, U.S.-based funds led the way with $1.3 billion in net inflows. Switzerland, Hong Kong, and Canada-based crypto investment products also saw net inflows of $58 million, $55 million, and $24 million, respectively.

Despite the seasonal lows, crypto investment continues to boom as investors are actively seeking out opportunities and showing confidence in the future of the market.

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