ETFs
Digital Asset Products See $441 Million in Inflows, US Spot Bitcoin ETFs See Nearly $300 Million
Cryptocurrency prices have fallen across the board over the past month, causing investors to flee and leading to widespread liquidations. However, the drop in bitcoin’s price to levels not seen in months has led some investors to take advantage of its discounted price and the prices of other cryptocurrencies, resulting in $441 million being invested in crypto-related products.
Bitcoin products saw $398 million in inflows, capturing 90% of funds invested in crypto products. US spot BTC ETFs saw $294.9 million Net capital inflows reached the highest amount in more than a month on July 8, reaching $217.78 million on June 6.
Blackrock’s IBIT fund outperformed its peers with the highest net inflows at $180 million, followed by Fidelity’s FBTC with $61.54 million. Grayscale’s GBTC saw $25.08 million, though it is known for net outflows even when other ETFs attract funds. Bitwise’s BITB saw $11.05 million, 21Share’s Ark Invest and ARKB saw $8.44 million, and VanEck’s HODL saw $1.59 million. Other U.S.-based ETFs saw neither net inflows nor outflows.
Inflows clearly show that investors are buying the dip and remaining bullish despite the turbulence in the cryptocurrency market in June, driven by the decline in the value of bitcoin due to Mt. Gox refunds and the German government sale activity. These factors increased selling pressure, forcing bitcoin holders to liquidate en masse.
CoinShares has released a report The report details how investors are snapping up assets at discounted prices, expecting them to appreciate in value. “Bitcoin saw inflows of $398 million, but accounted for only 90% of total inflows as investors chose to invest in a much broader set of altcoins.”
As for altcoins, he described: “The most notable of these was Solana, which saw $16 million last week, bringing year-to-date (YTD) inflows to $57 million, making it the best performing altcoin from a flows perspective. Ethereum sentiment appears to have shifted, with $10 million in inflows, but remains the only ETP to see net outflows YTD.”