Weekly inflow of funds into investment crypto products amounted to $130 million

What’s new? Digital asset-based investment products ended the week with positive fund flows for the first time since mid-April. According to CoinShares analysts, investors poured $130 million into cryptocurrencies between May 6 and May 10. In the previous four weeks, outflows were $251 million, $435 million, $206 million and $126 million, thus exceeding $1 billion.

CoinShares report

What else is known? Despite the positive outcome of the last week, analysts note that cryptocurrency-based exchange-traded products (ETPs) trading volumes continue to decline. Last month, the average was $17 billion per week or 31% of trading volume on global exchanges, by now it has dipped below $8 billion (22%).

Regionally, the largest inflows came from the United States ($135 million), while investment firm Grayscale recorded the lowest weekly outflow from the GBTC spot bitcoin exchange-traded fund (ETF).

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In Hong Kong, the second week after the launch of spot cryptocurrency ETFs saw inflows drop by $288 million to just $19 million. CoinShares admitted that most of the inflows in the first week ($307 million) were seed capital.

In Switzerland, there was recorded an inflow of funds in the amount of $14 million. Canada and Germany continued to see outflows of $20 million and $15 million, respectively, with cumulative outflows in those countries reaching $660 million since the beginning of the year.

Weekly inflows into bitcoin products rebounded to $144 million compared to outflows of $284 million between April 29 and May 3, while short positions saw outflows of $5,1 million, reaching $18 million over the past eight weeks.

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In contrast to bitcoin, the largest altcoin, ETH, once again faced $14 million in outflows, although it broke a 7-week streak of outflows with a $30 million positive in the last reporting period. CoinShares attributes the resumption of the negative trend to traders’ doubts about the imminent launch of spot Ethereum ETFs in the US.

Products from a number of investment companies have not yet been approved by the US Securities and Exchange Commission (SEC), and some experts believe that on the next key date (May 23) the decision on their launch will be postponed again.

In April, according to CCData analysts, the volume of cryptocurrency trading in the spot and derivatives markets declined for the first time in seven months. Compared to March, the figure fell by 43,8%.