Cryptocurrency Investment Product Receives First Inflow in Weeks Despite Decline in Trading Volume
According to CoinShares’ latest weekly report, cryptocurrency-related investment products recorded their first inflows totaling $130 million over the past week.
These inflows represent a notable shift in investor sentiment after several weeks of negative trends across cryptocurrency markets. However, these inflows have not improved investor participation in the asset class as “ETP trading volumes continue to decline.”
CoinShares research director James Butterfill noted that trading volume last week was $8 billion, compared to an average of $17 billion in April. He added:
“These trading volumes highlight that ETP investors are currently less engaged in the cryptocurrency ecosystem, accounting for 22% of total trading volume on trusted exchanges globally compared to 31% last month.”
Spot Bitcoin ETFs are still leading the way.
Spot Bitcoin ETFs from the US and Hong Kong are still seeing inflows into cryptocurrency products, according to a CoinShares report.
According to the report, America’s newborn Nine Bitcoin ETF led domestic inflows to the forefront with positive flows totaling $135 million.
In particular, Grayscale’s GBTC outflow has been decreasing in recent days, reaching a total of $171 million last week.
On the other hand, the newly launched Bitcoin ETF in Hong Kong saw more modest inflows of $19 million, suggesting that seed capital accounted for most of the inflows during the first week following the Bitcoin ETF launch.
Meanwhile, cryptocurrency-related ETPs in Canada and Germany continued to see total outflows of $20 million and $15 million, respectively, bringing the combined annual outflows from these countries to $660 million.
Ethereum ETF speculation causes fund outflow
CoinShares said uncertainty surrounding its spot Ethereum ETF product has undermined investor confidence in the second-largest digital asset by market capitalization.
According to the company:
“Low interaction from US regulators with ETF issuer applications for spot Ethereum ETFs has heightened speculation that ETF approval may not be imminent, which is reflected in last week’s total outflows of $14 million.”
Similarly, Short-Bitcoin also recorded an outflow of $5.1 million, reaching $18 million for the eighth consecutive week.
Conversely, other altcoins such as Polkadot, XRP, and Solana saw inflows of around $8 million.
