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CoinShares reported that inflows into crypto investment products hit $2 billion last week amid the prospect of lower interest rates. Asset managers including Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares and 21Shares reported net inflows of $2 billion in the first week of June, marking five consecutive weeks of positive inflows. CoinShares' latest report highlights this exceptional performance:
Impressive performance
Net inflows into crypto funds last week equaled the total for all of May, bringing the five-week total to $4.3 billion.
Assets under management topped the $1 billion mark for the first time since March, and trading volume also increased, up 55% from the previous week to $12.8 billion.
James Butterfill, head of research at CoinShares, highlighted that nearly all providers have seen unusual inflows, while outflows from traditional operators have slowed.
The change in sentiment is seen as a direct reaction to weaker than expected macroeconomic data from the United States, strengthening expectations of a monetary policy cut.
The U.S. market accounted for $1.98 billion of net inflows last week, part of a record-breaking streak for spot bitcoin, which now stands at over $4 billion through 19 trading days.
BlackRock's Spot Bitcoin ETF reported inflows of nearly $1 billion last week alone, exceeding 300,000 BTC in assets under management. The fund's assets now exceed $21 billion, surpassing the assets under management of Grayscale's GBTC Convertible Fund last week.
Bitcoin's Continued Dominance and the Rise of ETH Crypto
A U.S. spot bitcoin ETF generated net inflows of $1.8 billion last week, while bitcoin investment products saw inflows of $1.97 billion globally.
To put this in perspective, the fund absorbed more than two months' worth of new Bitcoin mining resources and maintained a daily average of 450 BTC over the course of a week.
Commenting on the situation, Nate Geraci, president of the ETF Store, highlighted how remarkable this performance is for a product that many thought was unpopular: Today, the ETF category has reached $60 billion in just five months.
When asked if Bitcoin prices were stabilizing despite the large net inflows, Bloomberg ETF analyst Eric Balchunas explained on X that the move was primarily due to Bitcoin holders selling rather than large ETF purchases. This creates a dynamic where Bitcoin holders take advantage of the price rise and sell, while the ETF continues to absorb the available volume.
Meanwhile, Ethereum-based investment products saw their highest net inflows since March, increasing by $69 million, a performance likely in response to the SEC’s surprise decision to allow a spot Ethereum ETF in the United States.
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Fascinated by Bitcoin since 2017, Evaristo has not kept a record on the issue. If he is most interested in trading, this essay will help him to explore all the leading centers on cryptocurrencies. As an editor, I aspire to permanently produce high-quality work that reflects the state of the sector as a whole.
Disclaimer
The views, thoughts and opinions expressed in this article are those of the author and should not be taken as investment advice. Please conduct your own research before making any investment decisions.
