Last week, global crypto investment products saw a surge in net inflows, totaling $1.44 billion. This data comes from CoinShares’ latest report. Major asset managers like Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares, and 21Shares all contributed to this growth.
This influx marks one of the largest weekly net inflows on record. Year-to-date figures now stand at $17.8 billion. James Butterfill, CoinShares’ Head of Research, noted that this far exceeds the $10.6 billion net inflows during 2021’s bull run.
Despite this, trading volumes across crypto exchange-traded products remained low. Last week, volumes hit just $8.9 million, well below the $21 billion weekly average for the year. Butterfill pointed out that this dip is part of a seasonal pattern, typical for the summer months.
Bitcoin-based funds led the charge with $1.35 billion in net inflows. Meanwhile, short-Bitcoin products saw the largest net outflows since April, totaling $8.6 million. U.S. spot Bitcoin ETFs alone brought in $1.05 billion last week. These funds have seen total net inflows of $15.8 billion since their launch in January.
Factors Owing to Crypto Surge
Butterfill attributed this activity to two main factors. First, price weakness due to the German government’s Bitcoin sales. Second, a change in sentiment driven by lower-than-expected U.S. CPI figures. Investors saw this as an opportunity to increase their positions.
Bitcoin’s price has faced challenges recently, including the German government’s sales of seized Bitcoins and concerns over Mt. Gox payouts. Despite this, Bitcoin is up over 10% in the past week and 4% over the past day. This rise follows a failed assassination attempt on pro-Bitcoin former U.S. President Donald Trump.
Ethereum products also saw significant inflows, adding $72 million last week. Butterfill suggested this was likely in anticipation of U.S. spot ETF launches. The SEC approved eight 19b-4 forms for spot Ethereum ETFs from major players like BlackRock, Fidelity, and Grayscale on May 23. However, trading will only begin once the S-1 registration statements become effective, potentially this week.
Regionally, U.S.-based funds led with $1.3 billion in net inflows. Switzerland, Hong Kong, and Canada-based crypto investment products saw $58 million, $55 million, and $24 million in net inflows, respectively.
Crypto investment is booming despite seasonal lows. Investors are seizing opportunities, signaling confidence in the market’s future.