7:00 a.m. ▪
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Evans S.
Crypto investment products saw inflows of $2 billion last week amid expectations of falling interest rates: CoinShares. Asset managers such as Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares and 21Shares reported net inflows totaling $2 billion during the first week of June, marking a fifth consecutive week of positive inflows . The latest report from CoinShares highlights this exceptional performance.
An impressive performance
Last week’s net inflows into crypto funds matched those of the entire month of May, bringing the five-week streak to a total of $4.3 billion.
Assets under management exceeded $1 billion for the first time since March. Trading volume also increased, generating $12.8 billion, 55% more than the previous week.
James Butterfill, head of research at CoinShares, pointed out that unusual inflows were seen at almost all providers, while outflows at incumbents have slowed.
This turnaround in sentiment appears to be a direct response to weaker-than-expected U.S. macroeconomic data, reinforcing expectations for monetary policy rate cuts.
The U.S. market accounted for $1.98 billion of last week’s net inflows, part of a record streak for the Bitcoin spot that now spans 19 trading days and more than $4 billion .
BlackRock’s IBIT spot Bitcoin ETF brought in nearly $1 billion last week alone, surpassing 300,000 BTC in assets under management. This fund now has more than $21 billion in assets, surpassing the assets under management of Grayscale’s GBTC-converted fund the previous week.
The continued dominance of Bitcoin and the rise of crypto ETH
The US spot Bitcoin ETF generated $1.8 billion in net inflows last week, with Bitcoin investment products adding $1.97 billion globally.
To put this into perspective, the funds have absorbed over two months of new bitcoin mining resources, maintaining an average of 450 BTC per day in a single week.
Nate Geraci, President of the ETF Store, commented on this situation, noting how remarkable this performance is for a product that many believed to be unpopular. Today, the ETF category represents $60 billion in just five months.
In response to questions about the stability of the bitcoin price despite significant net inflows, Eric Balchunas, ETF analyst at Bloomberg, explained on X that the action is mainly coming from bitcoin holders selling, rather than ETFs buying heavily. This creates a dynamic where bitcoin holders take advantage of increases to sell, while ETFs continue to absorb available volumes.
Meanwhile, Ethereum-based investment products saw their best week of net inflows since March, adding $69 million. This performance is likely a reaction to the SEC’s surprise decision to allow spot Ethereum ETFs in the United States.
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Evans S.
Fascinated by bitcoin since 2017, Evariste has continued to research the subject. If his first interest was in trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As an editor, he aspires to continually deliver high-quality work that reflects the state of the industry as a whole.
