Crypto ETPs Post $1.2B Inflows While Spot Prices Drop

By
Admin
-
0
3


Cryptocurrency investment products continued to attract strong investor interest last week despite major crypto assets like Bitcoin and Ether posting notable price drops.

Global crypto exchange-traded products (ETPs) recorded $1.24 billion of inflows for the trading week ending Friday, CoinShares reported on Monday.

With the latest inflows, crypto ETPs continued breaking year-to-date (YTD) inflow records, setting a new historic high at $15.1 billion, said CoinShares’ head of research, James Butterfill.

Total assets under management (AUM) in crypto ETPs also edged up to $176.3 billion from last week’s $175.9 billion.

Bitcoin leads ETP inflows for a second consecutive week

Bitcoin (BTC) ETPs saw a second consecutive week of inflows, totalling $1.1 billion, despite BTC prices dropping from around $108,800 on June 16 to $103,000 by the end of the week, according to CoinGecko.

The resisting growth in the Bitcoin ETP dynamics despite the spot price decline indicated that investors were buying on weakness, CoinShares’ Butterfill suggested.

Crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares

“This sentiment was further supported by minor outflows from short-Bitcoin products, which totalled $1.4 million,” he added.

Crypto Fear & Greed Index briefly shifts to “Fear”

CoinShares’ new crypto ETP report follows some notable adjustments in the Crypto Fear & Greed index, which suggested that the market sentiment dropped to “Fear” on Sunday after maintaining “Greed” for the past month. On Monday, the index slightly recovered to “Neutral.”

Though crypto ETP activity remained strong last week, the ETP sentiment cooled in the latter half of the week, likely due to the US Juneteenth holiday and emerging reports of US involvement in the Iran conflict, CoinShares’ Butterfill noted.

Related: Bitcoin ‘weakness shall pass’ after dip below $100K: Arthur Hayes

Crypto Fear & Greed index as of Monday. Source: Alternative.me

Both crypto ETPs and spot crypto prices held strong in the previous trading week, with ETPs posting $1.9 billion of inflows despite the escalation of the Israel-Iran conflict.