Cryptocurrency investment products clocked another week of inflows last week, even as volatility persisted across major digital assets, including Bitcoin (BTC) and Ether (ETH).
Global crypto exchange-traded products (ETPs) recorded $1.04 billion of inflows for the trading week ended Friday, CoinShares reported on Monday.
With the fresh inflows, crypto ETPs continued breaking year-to-date (YTD) inflow records, setting a new historical high just under $19 billion, said CoinShares’ head of research, James Butterfill.
Assets under management (AUM) in crypto ETPs reached $188 billion, up from last week’s $184.4 billion, marking another new high.
Bitcoin leads inflows with $790 million
Bitcoin ETPs led the way last week, posting $790 million of inflows, or 76% of total crypto ETP inflows last week.
BTC ETP inflows slowed from the previous three weeks, which averaged $1.5 billion of inflows weekly, Butterfill noted.
“The moderation in inflows suggests that investors are becoming more cautious as Bitcoin approaches its all-time high price levels,” he wrote.
Shift to Ether ETFs?
Ether ETPs followed with $225 million of inflows, marking an 11th consecutive week of inflows.
“On a proportional basis, weekly inflows during this run have averaged 1.6% of AUM, significantly higher than Bitcoin’s 0.8%,” Butterfill observed, suggesting that there has been a “notable shift in investor sentiment in favour of Ethereum.”
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The majority of crypto inflows last week were handled through BlackRock’s crypto funds, which saw $436 million in inflows, or 42% of all last week’s inflows by issuers.
US tops inflows despite the July 4 break
Regionally, crypto ETP inflows remained largely concentrated in the United States, even though US stock markets were closed on Friday in observance of the July 4th Independence Day holiday.
According to CoinShares, the US led with $1 billion in inflows, while Germany and Switzerland followed with$38.5 million and $33.7 million, respectively.
On the other hand, sentiment remained weak in countries like Canada and Brazil, which saw outflows of $29.3 million and $9.7 million, respectively.
Canada’s weak sentiment came despite the Canadian issuer 3iQ launching the spot XRP (XRP) exchange-traded fund on the Toronto Stock Exchange in mid-June.
“Greed” sentiment strong amid volatility spike
While Bitcoin ETPs experienced a slowdown in inflows, the overall sentiment on the market remained bullish last week.
According to data from Alternative.me, the Cryptocurrency Fear & Greed Index was firmly in “Greed” last week, with a score of 66.
The sentiment remained positive despite significant volatility in Bitcoin, which saw its price drop to as low as $105,400 last Tuesday and subsequently surged above $110,000 last Thursday, according to CoinGecko data.
Following Bitcoin’s trend, the Ether price also briefly tumbled below $2,400 last Tuesday and then surged above $2,620 on July 3.
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