Crypto Funds See $130M Inflows, Ending 5-Week Outflow Streak

After five consecutive weeks of outflows, crypto investment products have experienced a notable turnaround, recording inflows totaling $130 million. However, despite this positive development, exchange-traded product (ETP) volumes continue to subside.

They have recorded a weekly volume of $8 billion compared to the $17 billion average in April, according to a report by CoinShares.

Key points:

• The US accounts for the majority of inflows at $135 million.
• Grayscale sees the lowest weekly outflows since January at $171 million.
• Switzerland has a record inflow of $14 million.
• Hong Kong’s inflows slow to $19 million after record-breaking previous week.
• Canada and Germany continue to see outflows, totaling $20 million and $15 million, respectively.
• Bitcoin sees $144 million inflows, recovering from a weak month.
• Ethereum ETF approval doubts led to $14 million in outflows.

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The reduced ETP volumes highlight a decrease in investor participation in the crypto ecosystem. ETP investors also represent only 22% of total volumes on global trusted exchanges, down from 31% last month.

United States recorded $135 million in inflows

Regionally, the United States led the way, with inflows totaling $135 million. Notably, Grayscale experienced its lowest weekly outflows since January, amounting to $171 million. Switzerland also saw inflows of $14 million.

In contrast, Hong Kong, which had recorded record inflows in the previous week following the launch of its Bitcoin ETFs, saw a significant slowdown, with inflows of just $19 million. This suggests that the majority of the first week’s inflows post-ETF launches were likely seed capital.

Canada and Germany, on the other hand, continued to face outflows totaling $20 million and $15 million, respectively. These two countries have now seen combined year-to-date outflows of $660 million.

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Bitcoin saw inflows of $144 million, recovering from a weak month so far. Interestingly, short-bitcoin ETPs had outflows of $5.1 million, bringing the total for the last eight weeks to $18 million.

The report also highlights the impact of regulatory uncertainty on Ethereum investment products. The lack of response by US regulators to ETF issuer applications for a spot Ethereum ETF has raised speculation that approval of such products may not be imminent.