Crypto Funds Post $1.2B Inflows Despite Market Panic: CoinShares
ETP Sentiment Cools Amid Geopolitical Tensions Involving U.S. And Iran
Cryptocurrency investment products saw strong investor interest last week, even as major digital assets like Bitcoin and Ether experienced sharp price declines.
According to CoinShares’ weekly report published Monday, global crypto exchange-traded products (ETPs) recorded $1.24 billion in inflows for the week ending Friday. These latest figures pushed year-to-date (YTD) inflows to a record-breaking $15.1 billion.
Despite the continued investment, total assets under management (AUM) in crypto ETPs dipped slightly, falling from $179 billion to $176.3 billion over the same period.
Bitcoin Leads ETP Inflows For Second Week In A Row
Bitcoin-focused ETPs drew $1.1 billion in inflows last week, marking the second consecutive week of strong demand. This occurred even as Bitcoin’s spot price fell from approximately $108,800 on June 16 to around $103,000 by week’s end, according to CoinGecko data.
CoinShares head of research James Butterfill attributed the inflows to “buying on weakness,” noting that investors appeared to view the dip as a buying opportunity. He also pointed to $1.4 million in outflows from short-Bitcoin products as evidence of bullish sentiment.
Meanwhile, Ether ETPs logged their ninth consecutive week of inflows, with $124 million added. The nine-week streak now totals $2.2 billion, the strongest run of inflows since mid-2021.
BlackRock Alone Attracts $1.3 Billion In Inflows
Asset management giant BlackRock led the inflow rankings, with its iShares ETFs adding approximately $1.3 billion during the week. The company now manages over 3% of the total Bitcoin supply as of June 20, helping push YTD inflows above $15.5 billion.
Other issuers also saw gains, with ProShares and Bitwise adding $77 million and $33 million, respectively. However, not all firms saw inflows: ARK Invest and Fidelity Investments recorded outflows of $188 million and $62 million, respectively.
Crypto Fear & Greed Index Briefly Dips Into “Fear” Zone
The inflow data came as CoinShares tracked a shift in overall market sentiment. According to the Crypto Fear & Greed Index, sentiment dropped to “Fear” on Sunday after sitting in the “Greed” zone for several weeks. It slightly rebounded to “Neutral” on Monday.
Butterfill suggested the decline in sentiment toward the end of the week was partly influenced by the Juneteenth holiday in the U.S. and emerging news of American involvement in the Iran conflict.
Despite these macro uncertainties, both ETP flows and broader spot market activity remained resilient, following the prior week’s $1.9 billion in crypto ETP inflows during the Israel-Iran escalation.
