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Cryptocurrency investment products saw $2 billion in inflows last week amid interest rate cut expectations: CoinShares

According to the latest data from CoinShares, global cryptocurrency investment products from asset managers such as Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares and 21Shares recorded a total of $2 billion in net inflows in the first week of June, the fifth week in a row. We have recorded consecutive positive inflows. report.

Last week’s net inflows matched all of May’s net inflows, bringing totals to $4.3 billion for the fifth straight week, and assets under management topped the $1 billion level for the first time since March. Trading volume also increased last week, generating $12.8 billion, 55% more than the previous week, said James Butterfill, head of research at CoinShares.

“Unusually, we have seen inflows from almost all providers, with outflows from incumbents continuing to slow,” Butterfill said. “We believe this reversal in sentiment is a direct response to weaker-than-expected macro data from the U.S., pushing forward expectations of a monetary policy rate cut.”

Weekly cryptocurrency asset flows. Image: CoinShares.

While the US and Bitcoin continue to dominate, Ethereum recorded its best inflow week since March.

US markets accounted for $1.98 billion of net inflows last week amid record-breaking consecutive gains in spot markets. bitcoin BTC

It is currently a domestic exchange traded fund with over $4 billion over 19 trading days.

BlackRock’s IBIT Spot Bitcoin ​ETF brought in nearly $1 billion last week alone, surpassing 300,000 BTC in AUM and outpacing the AUM of Grayscale’s converted GBTC fund the week before, and now has over $21 billion in assets.

U.S. spot Bitcoin ETFs recorded a combined $1.8 billion in net inflows last week, while Bitcoin investment products added $1.97 billion globally. To put this in perspective, the fund absorbed more than two months’ worth of new Bitcoin mining supply (currently averaging 450 BTC per day post-halving) in just one week.

“I don’t think people realize how ridiculous this is,” said Nate Geraci, president of ETF Store. “Especially for products we were told no one wanted. It is now a $60 billion ETF category. “Within five months.”

In response to the question of why Bitcoin’s price action has remained relatively flat over the past week despite significant net inflows, Bloomberg ETF analyst Eric Balchunas posted the following on X: house. This is not what ETFs do. Obviously, it’s because they’ve been buying like crazy lately. Bitcoin holders sell flushers or use leverage. Time and time again, ETFs are seeing huge flows and are met with selling from other holders.”

meantime, Ethereum ETH

Underlying investment products recorded their highest net inflow since March, adding $69 million. This is likely a response to the surprise from the Securities and Exchange Commission (SEC). Butterfill said it has decided to allow spot Ethereum ETFs in the United States.

Bitcoin is up 0.5% over the past week and is currently trading at $69,396, according to The Block’s price page. Ethereum price has fallen 3.8% over the past seven days to $3,670. GMCI 30, which represents the top 30 cryptocurrencies, fell 1% to 141.87 last week.

Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

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