Investors put $2 billion into crypto derivatives over the week
Inflows into digital asset-based investment products continued for the fifth week in a row
10.06.2024 - 11:45
246
3 min
0
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.
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.
Bitfinex analysts have predicted BTC to rise to $120 000 in the current cycle
They relied on historical data on the behavior of the asset’s price in the months following the reduction of the reward for block mining
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).
SEC chair: Speed of launch of spot ETH ETFs depends on their issuers
Investment companies need to get approval of applications to launch new securities to start trading
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.
Useful material?
Market
To advance crypto-friendly regulation, Trump’s party needs to win a majority in the Senate
Oct 18, 2024
Incidents
The regulator believes that the court erred in not recognizing retail sales of XRP as securities transactions
Oct 18, 2024
Market
The leader was the Solana network, with 100 million active addresses per month
Oct 17, 2024
Crypto regulations
Amendments to the regulation of financial institutions have been published for public discussion until October 30
Oct 16, 2024
Market
Over the past four years, the company’s shares have grown by 1540%, while the index has gained only 111%
Oct 16, 2024
Incidents
Over the last 24 hours, the asset has updated its all-time high at $2,34
Oct 15, 2024