Coinspeaker
Crypto Investment Products Record Highest Inflows in 5 Weeks
According to the latest CoinShares report, crypto investment products saw inflows of $130 million, representing its highest in five weeks. While this figure is substantial, Exchange-Traded Product (ETP) volume declined to $8 billion for the week, compared to a $17 billion average in April.
Interest from Crypto ETP Product Buyers Wane
CoinShares Research James Butterfill highlighted that the recent drop in ETP volumes means investors are showing less interest in the crypto market. Supporting this viewpoint, the total volumes on global trusted exchanges dropped from 31% last month to 22% recently.
Based on regions, the United States recorded the highest crypto investment inflows, totaling $135 million. As Coinspeaker earlier reported, the demand for crypto in the United States has seen more than 50 million people invest in the industry to date.
Hong Kong came second with $19.1 million in inflows. However, this figure is comparatively lower than last week’s inflows, suggesting the majority of the first-week post-Bitcoin ETF approval inflow was seed capital. Switzerland came third with inflows of $14.1 million.
On the contrary, Canada, Germany, and Sweden recorded outflows of $20 million, $14.9 million, and $4.8 million respectively. The total combined outflows from Canada and Germany now stand at $660 million.
Per flows by digital assets, Bitcoin led the group with inflows of $144 million for the week. So far, with this inflow, Bitcoin appears to be recovering from a volatile month. Notably, at the time of this writing, Bitcoin was trading at $62,699, representing a 2.6% increase in the past 24 hours. Simultaneously, the trading volumes increased by 88.9% to over $24.4 billion.
However, short-Bitcoin ETP is deviating from this trend as it recorded total outflows of $ 5.1 million. This brings the total outflows for the past eight weeks to $18 million.
Doubt Rises for Ethereum ETF Approval
The pressure to approve a spot Ethereum ETF in the US became more intense after Hong Kong regulators approved the listing and trading of several spot Ethereum ETFs. Despite this pressure, bearish sentiments regarding the approval of an Ethereum ETF continue to increase among investors and traders.
According to them, there has been low interaction between the US regulators and ETF issuer applications for a spot Ethereum ETF. Surprisingly, this has been reflected in outflows for Ethereum, totaling $14.4 million last week.
Last week, the US Securities and Exchange Commission (SEC) delayed its decision to approve the spot Ethereum ETF for Invesco Galaxy. In its filing, the SEC said the next deadline for the agency to consider would be July 5, 2024, for either approving or disapproving the spot Ethereum ETF.
Nonetheless, Ethereum is currently demonstrating a 1.1% increase in the past day, to trade at $2,966. The trading volume is also following a bullish movement, increasing by 86% to $11.2 billion. The coming weeks are pivotal for Ethereum as any update from the SEC might make or mar this ongoing rebound.
Crypto Investment Products Record Highest Inflows in 5 Weeks
