Bitcoin
Bitcoin and Ethereum Funds Draw Another $185 Million Amid ETH ETF Hype
Bitcoin and Ethereum investment funds continue to attract a flood of capital as enthusiasm for upcoming ETH spot ETFs in the United States grows.
Global Bitcoin investment funds recorded net inflows totaling $148 million last week, according to a Monday publish from CoinShares, while short Bitcoin products saw outflows of $3.5 million.
Meanwhile, Ethereum funds absorbed $33.5 million, marking the second consecutive week of inflows after several months of little to no net activity for the asset.
“This represents a turnaround in investor sentiment in an asset that had experienced a series of outflows 10 weeks prior totaling $200 million,” the asset manager explained. The news also boosted Solana inflows last week to $5.8 million, now that potential ETFs for Solana and other altcoins appears to be on the table.
While most inflows have come from the United States, substantial cryptocurrency inflows have also been observed in Canada and Switzerland, where Ethereum’s institutional dominance alongside Bitcoin is relatively high.
Experts expect Ethereum ETFs to go live in July, with the potential to attract around 20% of the same demand as Bitcoin ETFs. “Grabbing 20% of what they got would be a huge win/successful launch by normal ETF standards,” Eric Balchunas, Bloomberg ETF analyst. he wrote last week.
In total, cryptocurrency investment fund flows across the world raised $185 million last week, bringing their total to more than $15 billion year-to-date. Volume for the week was $8 billion, down from $13 billion the previous week, per CoinShares.
As usual, most of the flows went into the biggest new Bitcoin spot ETFs, with BlackRock and Fidelity’s funds taking in $297 million and $176.98 million, respectively. That said, “historical” ETF issuers have recorded net outflows of $260 million, virtually all of which came from the Grayscale Bitcoin Trust (GBTC).
Last week marked a pivotal moment for GBTC, with the long-running fund losing its status as the world’s largest Bitcoin ETF to BlackRock, whose product charges a much lower management fee. Other ETFs established around the world have also lost heavily since BlackRock entered the scene, with European funds recording US$500 million in exits since the beginning of the year.
From May 27th, Bitcoin spot ETFs will also crossed the threshold of controlling 1 million BTC under management.
Edited by Ryan Ozawa.