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Bitcoin and Ethereum investment funds continue to attract a flood of capital as expectations grow for the upcoming ETH spot ETF in the United States.
Global Bitcoin investment funds saw total net inflows of $148 million last week, while short-term Bitcoin products saw outflows of $3.5 million, according to a Monday post from CoinShares.
Meanwhile, the Ethereum fund absorbed $33.5 million, marking its second straight week of inflows after months of little to no net activity for the asset.
“This represents a shift in investor sentiment for an asset that had previously seen outflows totaling $200 million over 10 weeks,” the asset manager explained. The news also boosted Solana’s inflows to $5.8 million last week, and now it appears a potential ETF for Solana and other altcoins is on the table.
Overall, most inflows have come from the United States, but significant cryptocurrency flows have also been seen in Canada and Switzerland, where Ethereum has a relatively high institutional dominance next to Bitcoin.
Here’s a look at the shares of Ethereum and Bitcoin at various points with an apples-to-apples comparison. The poor marking of Ethereum futures is a big part of my calculus. That said, stronger performance in Europe split the difference with a final forecast of 20% share. pic.twitter.com/TuX8Pm7vlq
Experts expect the Ethereum ETF to launch in July, likely to draw around 20% of the same demand as the Bitcoin ETF. “Taking 20% of what they got would be a huge win/successful launch by typical ETF standards,” Bloomberg ETF analyst Eric Balchunas wrote last week.
In total, global cryptocurrency inflows reached $185 million last week, bringing the total to date to over $15 billion. Trading volume this week was $8 billion, down from $13 billion the previous week, per CoinShares.
As usual, most of the inflows went to the largest new Bitcoin spot ETFs, with funds from BlackRock and Fidelity reaching $297 million and $176.98 million, respectively. That said, the “active” ETF issuer saw net outflows of $260 million, and virtually all of these funds came from the Grayscale Bitcoin Trust (GBTC).
Last week was a pivotal moment for GBTC. That’s because the long-held fund lost its position as the world’s largest Bitcoin ETF to BlackRock, which charges much lower management fees. Since BlackRock’s arrival, other traditional ETFs around the world have also suffered major losses, with the European fund experiencing $500 million in outflows since the start of the year.
As of May 27, the Bitcoin Spot ETF also surpassed the threshold of managing 1 million BTC under management.
Edited by Ryan Ozawa.
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