Inflows into digital asset-based investment products continued for the fifth week in a row

Investors put $2 billion into crypto derivatives over the week

10.06.2024 - 11:45

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3 min

What’s new? Inflows into cryptocurrency-based investment products have been sustained for five consecutive weeks, totaling $2 billion from June 3 to June 7, with the total reaching $4,3 billion since May 6. According to analysts at investment firm CoinShares, the trading volume in cryptocurrency exchange-traded products (ETPs) rose by 55% during the week to $12,8 billion.

CoinShares report

What else is known? Experts note that almost all crypto ETP providers saw an inflow of funds, while outflows slowed down for the few companies with negative results. In their opinion, the positive change in investor sentiment is a direct reaction to macroeconomic data in the United States, which turned out to be “weaker than expected.”

CoinShares notes that the macroeconomic situation has reinforced expectations of monetary policy easing through a rate cut by the US Federal Reserve.

In addition, market growth has led to total assets under management (AuM) at crypto investment firms exceeding $100 billion for the first time since March this year.

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In the regional context, the main inflow traditionally came to the United States ($1,98 billion). In addition, the spot bitcoin exchange-traded fund (ETF) IBIT from the world’s largest investment company BlackRock, traded on Nasdaq, surpassed its main competitor GBTC from Grayscale, available on NYSE, by AuM: $21,07 vs. $19,72 billion. IBIT began trading on January 11 this year, while GBTC has been around since 2013.

Bitcoin continues to be the most popular asset, with products based on it attracting $1,97 billion. Outflows in short positions persisted for the third week in a row, during which time they reached $5,3 million.

For Ethereum, last week was the best week since March, with inflows totaling $69 million. In CoinShares, the probable reason for the takeoff is the pending approval of ETFs based on the largest altcoin by the US Securities and Exchange Commission (SEC).

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There was little activity in altcoins, with analysts singling out token-based ETPs FTM and XRP, which raised $1,4 million and $1,2 million, respectively.

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