Optimism over a possible end to the conflict and a recent burst in Bitcoin’s price drove investor enthusiasm, leading cryptocurrency investment products to record another week of robust inflows.
According to CoinShares’ report on Monday, crypto exchange-traded products (ETPs) saw $1.4 billion in inflows last week, which is the second-biggest weekly inflows since January, surpassing the previous week’s $1.1 billion.
With a net inflow of around $3.8 billion so far this year, crypto ETPs have seen a three-week inflow of $2.7 billion. Assets under management (AUM) have risen to $154.8 billion, the highest level since early February, after falling to $128 billion in March.
Return to Risk Appetite
According to James Butterfill, director of research at CoinShares, the increase in crypto funds is most likely caused by a return to risk appetite after discussions between the US and Iran to extend the truce. According to CoinGecko, Bitcoin’s close proximity to $78,000 on Friday only served to bolster the sentiment.
With $1.12 billion in inflows last week, Bitcoin was far and away the leader among ETP gains. As a result of the advances, AUM reached $123 billion, while year-to-date inflows reached $3 billion. Inflows of $1 billion were recorded last week by US spot Bitcoin exchange-traded funds (ETFs), which accounted for the bulk of the gains.
This was the best week for Ether investment products since January, with $328 million flowing into the market. This put the ETPs in the black for the year so far, with $197 million flowing into the market.
However, cryptocurrency ETPs like XRP and Solana had negative flows, with $56 million going to XRP. A meager $2.3 million left Solana’s coffers. The tiny influx of $1.4 million into short-Bitcoin deals indicates that there is residual but limited demand for hedging.
When looking at regional inflows, the United States came out on top with $1.5 billion, while Germany came in second with just $28 million. With $138 million in outflows, Switzerland topped the charts for redemptions last week.