Global Crypto Investment Products See $245 Million In Inflows

According to a report from CoinShares, crypto investment products experienced a substantial influx of $245 million last week. However, this figure masks a varied performance across different digital assets. 

James Butterfill, Head of Research at CoinShares also highlighted a surge in trading volumes since May, reaching $14.8 billion. Specifically, the surge was largely driven by the recent launch of Spot Ethereum (ETH) Exchange-Traded Funds  (ETFs). 

Investors Diversify Their Portfolios

Bitcoin-based investment products were not left out of the recent rally. Bitcoin enjoyed robust inflows of $519 million, pushing its month-to-date inflows to $3.6 billion and its year-to-date inflows to an unprecedented $19 billion. This demonstrates a continued strong investor interest in Bitcoin despite the broader market fluctuations.

Recall that the launch of spot-based Ethereum ETFs has attracted some of the largest inflows since December 2020. These newly issued ETFs garnered an impressive $2.2 billion in inflows, highlighting investor confidence in Ethereum’s potential. Concurrently, trading volumes in Ethereum Exchange-Traded Products (ETPs) soared by 542%, indicating heightened trading activity and interest in Ethereum-related products.

This mixed picture of digital assets reflects a dynamic and evolving market landscape. While Bitcoin remains a dominant force, the substantial interest in Ethereum ETFs points to a growing diversification within the digital asset investment space. 

Crypto Investment Products Sees Positive Sentiments

Last week, crypto investment products attracted $1.35 billion in inflows. Accordingly, these products have seen a three-week streak of inflows totaling $3.2 billion. Some of the asset managers contributing to these huge inflows of cash include BlackRock, Ark Investment, Fidelity Investment, and Grayscale Investment. Specifically, ETP volume increased by 45% week-over-week to $12.9 billion, representing 22% of broader crypto market volumes.

Interestingly, Bitcoin-based investment products were not left out of the rally, amassing $1.27 billion in inflows at the beginning of the month. However, short-Bitcoin ETPs recorded further outflows of $1.9 million, bringing outflows to $44 million since March. Notably, the Bitcoin inflows that came in were majorly from US Bitcoin ETFs.

Spot Ether ETF Inflow Will Surpass Bitcoin

Matt Hougan, the Chief Investment Officer at asset management firm Bitwise, suggests that spot Ether ETFs launch may affect Ether more than similar products affected Bitcoin. This is because of the different market dynamics and Ethereum’s current development stage. Hougan also emphasized that Ether could outperform Bitcoin in the context of ETF inflows. 

According to Hougan, the introduction of spot Ethereum ETFs is poised to significantly impact Ether’s market value, potentially driving it to unprecedented heights exceeding $5,000. Recall that these spot Ether ETFs generated around $1.08 billion in cumulative trading volume on their first day. This impressive figure, though about 23% of what spot Bitcoin ETFs saw on their first day, signals a promising future for Ether ETFs.