- Bitcoin saw inflows of $1.98 billion
- Ethereum witnessed its largest inflow week since March
- Total inflows for the past five weeks reached $4.3 billion
Investment flows into digital assets for last week reached an impressive $2 billion. This brings the 5-week run of inflows to digital assets to $4.3 billion, according to CoinShare’s latest research.
The trading volumes of Exchange-traded products (ETPs) rose massively by 55% from the prior week's figures to $12.8 billion.
Response to US macro data
For the first time since March this year, total Assets Under Management (AuM) rose above $100 billion, driven by the positive price action the market saw during the week.
There was an unusual slowdown of outflows, with inflows coming in from across all providers. This, according to CoinShare, is believed to be in response to the “weaker than expected macro data in the US, bringing forward monetary policy rate cut expectations.”
By region, the US accounted for the largest share of inflows, totalling $1.98 billion. The first trading day of the week saw the third largest daily inflow on record, and the iShares bitcoin ETF surpassed the incumbent Grayscale with $21 billion of AuM.
Bitcoin remains king
As expected, Bitcoin was the primary focus: it saw stable $1.97 billion inflows for the week, and Short Bitcoin’s outflows for the third consecutive week totalled $5.3 million. Ethereum, on the other hand, witnessed its best week since March: inflows totalled $69 million. Experts suggest this could be in reaction to the US Securities and Exchange Commission's (SEC) decision to allow spot-base ETFs.
While Bitcoin and Ethereum got the bulk, altcoins witnessed limited activity, among which Fantom and XRP stood out with inflows of $1.4 million and $1.2 million, respectively.
Recall that on May 23, the SEC approved a rule (19b-4 forms) change that would allow ETFs that buy as well as hold Ethereum. The approval came about six months after the SEC also approved the Bitcoin ETFs, which have proven to be a huge success.
Experts at Mayer Brown say the Ethereum ETF approval appears narrowly tailored to digital assets having active futures markets on the CME.
“Bitcoin and ether are the only two such digital assets, and it remains to be seen whether issuers can successfully argue that other cryptocurrencies might have sufficiently secure markets (which has been one of the SEC’s central arguments against spot crypto ETFs) without being able to rely on several years of historical trading data from established traditional exchanges,” they added.
