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According to a June 26 report from CoinShares, the recent surge in activity around exchange-traded funds has resulted in the largest weekly influx of digital asset investment products since July 2022.
A $199 million inflow for the week of June 19-23 turned into a string of consecutive outflows over nine weeks, with Bitcoin (BTC) accounting for the lion’s share of $187 million (94% of total inflows).
This week in Fund Flows, by @jbutterfill:
A sharp shift to bullishness among investors, injecting US$199m into digital asset investment products.
This marks the largest single weekly inflow since July ’22, correcting almost half of 9 consecutive weeks of outflows. (1/5) pic.twitter.com/TvZ0EM2KLU
— CoinShares (@CoinSharesCo) June 26, 2023
Analysts at CoinShares attributed the reversal to increased activity from exchange-traded product (ETP) issuers in the exchange-traded fund (ETF) space:
“We believe this renewed positive sentiment is due to recent announcements from prominent ETP issuers who have filed physical backed ETFs with the US Securities and Exchange Commission.”
As reported on June 23, Bitcoin hit a 2023 high of $31,431 last week — a move that was largely driven by institutional interest in ETFs, as BlackRock and Fidelity Investments filed for spot Bitcoin ETFs in June.
While the surge in Bitcoin inflows was able to have a slight domino effect for Ether (ETH) – inflows increased to $7.8 million – there were no signs of a continuation for altcoins, which saw little to no positive movement except for a slow influx for XRP and Solana ( SOL) for $240,000 and $170,000, respectively.
Related: Binance Reverses Decision to Exclude Privacy Coins from Europe
BITO’s Bitcoin futures fund, the ProShares Bitcoin Strategy ETF, also made a splash last week, posting its biggest weekly inflow of the year at $65.3 million, bringing its assets to $1 billion.
These rallies came after Bitcoin fell below $25,000 in June for the first time since mid-March after the US Securities and Exchange Commission filed separate lawsuits against Binance and Coinbase alleging wrongdoing.
Last week’s Bitcoin high of $31,431 not only broke a nine-week streak of cryptocurrency asset outflows, but also set three new national records based on the cryptocurrency. As reported on June 25, in Argentina, Venezuela and Lebanon, BTC reached the highest level against local currencies.