Crypto investments soar with $2 billion inflow amid US macroeconomic shifts

1 Mins read

Investor confidence in crypto-related investment products surged last week, buoyed by the US macroeconomic situation.

In its latest weekly report, CoinShares observed that these financial instruments saw net inflows of $2 billion last week, matching the total inflows recorded for May.

Additionally, this marks the fifth consecutive week of positive inflows, with the assets drawing around $4.3 billion worth of investments during the period. Notably, this is the second-longest streak of inflows since the US Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETF) in January.

James Butterfill, CoinShares’ head of research, noted that inflows were widespread across providers like BlackRock, Fidelity, Proshares, Bitwise, and Purpose, with a notable reduction in outflows from Grayscale.

Crypto ETP Providers flow
Chart Showing Crypto ETPs Flows by Provider (Source: CoinShares)

Butterfill explained that the inflows could be attributed to the “weaker-than-expected US macro data,” which has raised expectations for monetary policy rate cuts. He added:

“[The] positive price action saw total assets under management (AuM) rise above the $100 billion mark for the first time since March this year.”

Meanwhile, trading activity for these investment products surged after weeks of subdued activities. Last week, trading volume was boosted by 55% to $12.8 billion, significantly exceeding the $8 billion recorded in the prior week.

Bitcoin, Ethereum drive flows

Bitcoin (BTC) remains a crucial interest for investors, registering $1.9 billion in inflows. Meanwhile, short BTC products experienced outflows for the third consecutive week, totaling $5.3 million.

Crypto ETP Flows Crypto ETP Flows
Crypto ETP Flows (Source: CoinShares)

Ethereum (ETH) saw a significant resurgence, with $69 million in inflows, marking its best week since March. This pushed ETH’s year-to-date flows to $81 million, recovering from earlier losses before the SEC approved several spot Ethereum ETF 19b-4 filings.

Other significant altcoins had minor activities, with inflows under $1 million. However, Fantom and XRP stood out, recording inflows of $1.4 million and $1.2 million, respectively.

Mentioned in this article

Source link

Related posts

Spot Ethereum ETF issuers amend S-1 filings, some with fees, seed investments

1 Mins read
Seven spot Ethereum ETF applicants amended their registration statements with the SEC on June 21, leading to increased expectations of a trading…

Consensys to continue lawsuit against SEC as 'battle far from over'

2 Mins read
Consensys head of litigation Laura Brookover said the company would continue to sue the SEC as the “battle” for regulatory clarity is…

Bullish sign for Ethereum as exchange balances drop

1 Mins read
What is CryptoSlate Alpha? A web3 membership designed to empower you with cutting-edge insights and knowledge, powered by Access Protocol. Learn more…



Leave a Reply

Your email address will not be published. Required fields are marked *