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Cryptocurrency Investments Soar with $2 Billion Inflows Amid Macroeconomic Shifts in US
Investor confidence in cryptocurrency-related investment products increased last week, supported by the macroeconomic situation in the United States.
In his latest weekly relationship, CoinShares noted that these financial instruments recorded net inflows of $2 billion last week, matching the total inflows recorded in May.
Additionally, this marks the fifth consecutive week of positive inflows, with assets absorbing approximately $4.3 billion in investments during the period. Notably, this is the second longest streak of inflows since the US Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs) in January.
James Butterfill, head of research at CoinShares, noted that inflows were spread across providers such as BlackRock, Fidelity, Proshares, Bitwise and Purpose, with a notable reduction in outflows from Grayscale.
Chart showing crypto ETP flows by provider (Source: CoinShares)
Butterfill explained that the inflows could be attributed to “weaker-than-expected US macro data,” which raised expectations for monetary policy rate cuts. She added:
“[The] The positive price action has seen total assets under management (AuM) rise above the $100 billion mark for the first time since March this year.”
Meanwhile, trading activity in these investment products increased after weeks of subdued activity. Last week, trading volume increased by 55% to $12.8 billion, significantly exceeding the $8 billion recorded the previous week.
Bitcoin and Ethereum flows
Bitcoin (Bitcoin) remains a crucial interest for investors, recording inflows of $1.9 billion. Meanwhile, BTC shorts saw outflows for the third consecutive week, totaling $5.3 million.
Ethereum (ET) saw a significant recovery, with inflows of $69 million, marking its best week since March. This pushed year-to-date ETH flows to $81 million, recovering from earlier losses before SEC approval several ETF 19b-4 spot documents on Ethereum.
Other significant altcoins have had smaller activity, with inflows of less than $1 million. However, Fantom and XRP stood out, recording inflows of $1.4 million and $1.2 million, respectively.