Cryptocurrency investment products continued to attract strong investor interest last week despite major crypto assets like Bitcoin and Ether posting notable price drops.
Global crypto exchange-traded products (ETPs) recorded $1.24 billion of inflows for the trading week ending Friday, CoinShares reported on Monday.
With the latest inflows, crypto ETPs continued breaking year-to-date (YTD) inflow records, setting a new historic high at $15.1 billion, said CoinShares’ head of research, James Butterfill.
Despite continued inflows, total assets under management (AUM) in crypto ETPs edged down from $179 billion in the previous week to $176.3 billion by the end of last week.
Bitcoin leads ETP inflows for a second consecutive week
Bitcoin (BTC) ETPs saw a second consecutive week of inflows, totalling $1.1 billion, despite BTC prices dropping from around $108,800 on June 16 to $103,000 by the end of the week, according to CoinGecko.
The resisting growth in the Bitcoin ETP dynamics despite the spot price decline indicated that investors were buying on weakness, CoinShares’ Butterfill suggested.
“This sentiment was further supported by minor outflows from short-Bitcoin products, which totalled $1.4 million,” he added.
Ether (ETH) ETPs recorded their ninth consecutive week of inflows, netting $124 million last week and bringing the inflow run’s total to $2.2 billion.
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“This marks the longest run of inflows since mid-2021, reflecting continued robust investor sentiment toward the asset,” Butterfill noted.
BlackRock alone sees $1.3 billion of inflows
BlackRock, the largest Bitcoin asset manager worldwide, continued seeing major gains last week, accumulating more than 3% of the total BTC supply by June 20.
BlackRock’s iShares exchange-traded funds (ETFs) led the inflows last week with about $1.3 billion of inflows, pushing YTD inflows past $15.5 billion.
Other issuers such as ProShares and Bitwise saw minor inflows of $77 million and $33 million, respectively.
ARK Invest and Fidelity Investments posted outflows from crypto ETFs last week, totaling $188 million and $62 million, respectively.
Crypto Fear & Greed Index briefly shifts to “Fear”
CoinShares’ new crypto ETP report follows some notable adjustments in the Crypto Fear & Greed index, which suggested that the market sentiment dropped to “Fear” on Sunday after maintaining “Greed” for the past month. On Monday, the index slightly recovered to “Neutral.”
Though crypto ETP activity remained strong last week, the ETP sentiment cooled in the latter half of the week, likely due to the US Juneteenth holiday and emerging reports of US involvement in the Iran conflict, CoinShares’ Butterfill noted.
Related: Bitcoin ‘weakness shall pass’ after dip below $100K: Arthur Hayes
Both crypto ETPs and spot crypto prices held strong in the previous trading week, with ETPs posting $1.9 billion of inflows despite the escalation of the Israel-Iran conflict.
Magazine: History suggests Bitcoin taps $330K, crypto ETF odds hit 90%: Hodler’s Digest, June 15 – 21