Digital Asset Investment Products Witness a Surge, Recording $2 Billion Inflows in June
Summary:
June has begun on a positive note for digital asset investment products, with inflows close to $2 billion noted across almost all providers, as per a report by CoinShares. While exchange-traded products (ETPs) saw a record trading volume of $12.8 billion, the overall assets under management surpassed $100 billion for the first time since March 2024. Of the providers, iShares and Fidelity ETFs in the US led with inflows, while Bitcoin continued to dominate the ETP space with $1.97 billion for the week. Ether-based products also saw a significant inflow of $69 million due to the recent approval of Ether-based spot ETFs in the US.
June has started on a good note for digital asset investment products, with nearly all providers witnessing inflows and overall contributions totalling $2 billion. This was revealed through CoinShares' weekly fund flows report released on June 10. The report shows that the initial inflows in June added to a five-week total gain of $4.3 billion for crypto investment products. Additionally, it pointed to a significant surge in exchange-traded products (ETPs) trading volumes for June's first week, shooting up to $12.8 billion, a 55% rise from the preceding week.
All but a few ETP providers experienced inflows in the month's opening week. CoinShares described this trend as out of the ordinary, suggesting that it might be a reaction to underwhelming macro data. CoinShares noted, "We think this change in outlook could be a straightforward reaction to disappointing U.S. macro data, which has led to earlier forecasts for a monetary policy rate cut."
Moreover, the asset manager reported that buoyant price performance increased the total assets under management (AUM) surpassing the $100 billion threshold for the first time since March 2024.
However, only Grayscale Investments and CoinShares XBT reported outflows for the week. Among the providers registering inflows, iShares exchange-traded funds (ETFs) registered the highest influx in the U.S., attracting $948 million, closely followed by Fidelity ETFs, amassing $680 million.
While Bitcoin (BTC) still governs the ETP sphere, recording $1.97 billion for the week, Ether (ETH)-based products too made a significant impression. CoinShares stated that for the week, Ethereum investment products recorded an inflow of $69 million, the highest since March. They attribute this potential surge to the recent sanctioning of Ether-based spot ETFs.
Altcoin-based ETPs registered a comparatively moderate activity, with Fantom (FTM) and XRP (XRP) recording inflows of $1.4 million and $1.2 million. CoinShares recently approved several spot ETH ETFs in the United States on May 23 by the Securities and Exchange Commission.
Published At
6/10/2024 1:24:09 PM
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