Crypto investment products saw $1.4 billion in net inflows last week: CoinShares

Global crypto investment products at asset managers such as Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares and 21Shares registered net inflows totaling $1.44 billion last week, according to CoinShares' latest report.

The figures represent one of the largest registered weekly net inflows, bringing year-to-date figures to a record $17.8 billion, as digital asset investment products saw further buying on price weakness, CoinShares Head of Research James Butterfill wrote. This far exceeds the $10.6 billion net inflows generated in 2021’s bull run.

Weekly crypto asset flows. Images: CoinShares.

However, trading volumes across crypto exchange-traded products remained significantly below the $21 billion weekly average this year, generating just $8.9 million last week — reflecting a seasonal pattern of lower volumes in the summer months, Butterfill previously noted.

Unsurprisingly, Bitcoin-based funds dominated with $1.35 billion in net inflows, while short-Bitcoin products saw the largest weekly net outflows since April, totaling $8.6 million. U.S. spot bitcoin exchange-traded funds brought in $1.05 billion alone last week amid a six-day positive streak as total net inflows since launching in January reached a record $15.8 billion.

“We believe price weakness due to the German government bitcoin sales and a turnaround in sentiment due to lower than expected CPI in the U.S. prompted investors to add to positions,” Butterfill said.

The ‘Trump pump’

Bitcoin’s price has struggled in recent weeks amid the German government’s sales of seized bitcoins and concerns surrounding Mt. Gox payouts. However, the foremost cryptocurrency is up by more than 10% in the past week and 4% over the past day amid a surge following the failed assassination attempt against pro-Bitcoin former U.S. President Donald Trump, according to The Block’s bitcoin price page.

BTC/USD price chart. Image: The Block/TradingView.

Ethereum products also saw their largest net inflows since March, adding $72 million last week, likely in anticipation of U.S. spot ETF launches, Butterfill noted.

The Securities and Exchange Commission approved eight 19b-4 forms for spot Ethereum ETFs from BlackRock, Fidelity, Bitwise, VanEck, 21Shares, Invesco, Franklin Templeton and Grayscale on May 23.

However, the issuers still need to have their S-1 registration statements become effective before trading can begin, potentially this week.

Regionally, U.S.-based funds led with $1.3 billion in net inflows, while Switzerland, Hong Kong and Canada-based crypto investment products saw $58 million, $55 million and $24 million in net inflows, respectively.