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Cryptocurrency investment products took on $2 billion last week amid interest rate cut predictions

According to the latest report from CoinShares, global cryptocurrency investment products from asset managers such as Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares and 21Shares recorded net inflows reaching a total of $2 billion in the first week of June. This is the fifth consecutive week of positive inflows.

Last week’s net inflows matched inflows for the entire month of May, bringing the streak to five consecutive weeks totaling $4.3 billion and assets under management above $1 billion for the first time since March . James Butterfill, Head of Research at CoinShares, write:

“Trading volume also increased last week, generating $12.8 billion, up 55% from the previous week. Unusually, capital inflows were seen across almost all providers, with capital outflows from traditional companies continuing to slow. We believe this change in sentiment is a direct response to weaker-than-expected macro data in the United States, increasing expectations of interest rate cuts for monetary policy.”

Current flow through weekly cryptocurrency | Source: CoinShares

The United States and Bitcoin continue to dominate, while Ethereum has week Best inflow since March

The US market accounted for $1.98 billion in net inflows last week amid a record streak of inflows into spot Bitcoin ETFs in the country, now spanning 19 trading days and more. 4 billion dollars.

BlackRock’s IBIT Bitcoin Spot ETF brought in nearly $1 billion last week alone, has more than 300,000 BTC in assets under management (AUM), surpassing the AUM of Grayscale’s converted GBTC fund last week and currently accounts for more than $21 billion in assets.

This US Bitcoin spot ETF generated a total of $1.8 billion in net inflows last week, with Bitcoin investment products adding another $1.97 billion globally. By comparison, the funds absorbed more than two months of new Bitcoin mining supply (now averaging 450 BTC per day post-halving) in just one week.

electronic money

Source: The Block

ETF Store President Nate Geraci forecast:

“A $60B ETF Portfolio in Five Months.”

Responding to questions about why Bitcoin’s price action remained relatively stable last week despite significant net inflows, Bloomberg ETF analyst Eric Balchunas commented. post on X:

“I’ve said it before and I’ll say it again. This is not what the ETFs are doing, it is clearly because recently holders have been frantically buying, selling or deleveraging… Time after time, the ETFs continue to rotate like this and the holders Others continue to sell.”

Meanwhile, Butterfill said Ethereum-based investment products saw their best week of net inflows since March, adding $69 million – possibly a reaction to the Commission’s surprise decision US Stocks and Exchanges on Enabling Spot Ethereum ETFs in the US.

At the time of writing, Bitcoin is up 0.3% over the past week, currently trading for $69,353. ETH is down 3.8% over the past seven days and is trading at $3,673.

You can see Bitcoin price and ETH price here.

Minh Anh

According to The Block

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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