TL;DR
- Cryptocurrency Inflows Surge: Coinshares reports a massive $2 billion inflow into cryptocurrency investment products, with Bitcoin (BTC) receiving $1.97 billion, as the market anticipates a potential Federal Reserve interest rate cut.
- Altcoins and Regional Trends: Altcoins like Fantom (FTM), XRP, and Solana (SOL) see modest inflows; the US dominates regional inflows with $1.98 billion, while Sweden experiences outflows.
- ETP Trading Volumes and AUM Increase: Exchange-traded products (ETPs) trading volumes jump by 55%, and total assets under management (AUM) surpass $100 billion, with most crypto ETP providers witnessing unusual inflows.
CoinShares’ latest weekly fund flows report, released on June 10, underscores that cryptocurrency investment products have attracted more than $2 billion in inflows. The report by CoinShares further notes that the inflows at the start of June have pushed the five-week cumulative total for digital asset products to $4.3 billion.
This surge is seen as a market reaction in anticipation of a potential interest rate cut, marking a five-week inflow streak totaling $4.3 billion. The majority of the inflows were directed towards Bitcoin (BTC), which saw an impressive $1.97 billion influx.
Meanwhile, Ethereum (ETH), buoyed by news of a spot ETF, welcomed inflows of $68.9 million. However, a short BTC fund indexed to Bitcoin’s decline experienced an outflow of $5.3 million.
Altcoins Experience Modest Inflows
Other altcoins like Fantom (FTM), XRP, and Solana (SOL) received smaller inflows of $1.4 million, $1.2 million, and $0.7 million, respectively. Bitcoin continued to lead the way in terms of inflows, with Ethereum seeing a surge in inflow following the SEC’s approval of spot ETFs.
Regional Fund Flows Highlight US Dominance
Regionally, the United States led with an inflow of $1.98 billion, followed by Hong Kong and Canada with $26.1 million and $12.7 million respectively. In contrast, Sweden faced an outflow of $9.2 million.
June’s Positive Start for Digital Asset Investment Products
June kicked off positively for digital asset investment products, with nearly all providers witnessing inflows, culminating in a total inflow of $2 billion. CoinShares’ report also noted a 55% increase in trading volumes for exchange-traded products (ETPs), reaching $12.8 billion.
Unusual Inflow Pattern Across ETP Providers
Almost all crypto ETP providers saw inflows, an unusual pattern that may be a response to weaker macroeconomic data in the US. This has led to a shift in market sentiment, with expectations of a monetary policy rate cut being brought forward.
Positive market movements have pushed the total assets under management (AUM) above $100 billion for the first time since March 2024.
Interestingly, while Grayscale Investments and CoinShares XBT experienced outflows, iShares and Fidelity ETFs in the US witnessed substantial inflows. It’s a testament to the dynamic nature of the market and the diverse investment choices available.
