Bitcoin ETFs See $2B Inflow Tsunami In First Week Of June

Zinger Key Points
  • Digital asset investment products saw $2 billion in inflows in the first week of June, bringing the five-week total to $4.3 billion.
  • Bitcoin attracted $1.97 billion in inflows, with the iShares Bitcoin ETF surpassing Grayscale, reaching $21 billion in assets.

The cryptocurrency market is experiencing a resurgence of investor interest, with digital asset investment products attracting $2 billion in inflows during the first week of June.

This robust inflow marks the culmination of a five-week run that has seen a total of $4.3 billion injected into the space.

The positive sentiment is further underscored by a significant jump in trading volumes on Exchange Traded Products (ETPs), which surged 55% to $12.8 billion for the week, according to Coinshares.

Bitcoin Leads the Charge

Bitcoin BTC/USD emerged as the clear favorite among investors, raking in $1.97 billion in inflows.

This strong performance aligns with the recent approval of spot-based Bitcoin ETFs, a potential catalyst for broader institutional adoption.

Additionally, the report highlights a noteworthy trend: short-Bitcoin positions are experiencing outflows for the third consecutive week, totaling $5.3 million.

This suggests a growing conviction among some investors that Bitcoin’s price is poised for a rise.

Ethereum Sees Best Week Since March

Ethereum ETH/USD also enjoyed a positive week, recording its best inflow performance since March at $69 million.

This upsurge is likely fueled by the SEC decision allowing spot-base Ethereum ETFs, mirroring the positive sentiment surrounding Bitcoin.

Also Read: Can Bitcoin Reach $83,000? Key Factors Needed For A Breakout: 10x Research

Positive Macroeconomic Backdrop

The report identifies weaker-than-expected U.S. economic data as a key driver behind the recent influx of funds.

These developments have spurred anticipation of the Federal Reserve cutting interest rates, which are historically viewed as favorable for riskier assets like cryptocurrencies.

This optimistic outlook is further bolstered by positive price action, with total assets under management (AuM) for digital assets surpassing the $100 billion mark for the first time since March 2024.

Regional Breakdown and Additional Insights

The United States emerged as the dominant region in terms of inflows, contributing $1.98 billion last week.

The first day of the week saw the third-largest daily inflow on record.

This surge in U.S. investment underscores the growing mainstream acceptance of cryptocurrencies.

According to SoSo Value, on June 7, Bitcoin spot ETFs witnessed a combined net inflow of $131 million.

Interestingly, Grayscale’s GBTC experienced a single-day outflow of $36.34 million, while BlackRock’s IBIT saw a significant single-day inflow of $168 million.

This shift in dominance suggests that newer entrants like BlackRock are rapidly capturing market share in the Bitcoin ETF space.

Looking Ahead

The recent surge in inflows and positive market sentiment point towards a potentially bullish period for cryptocurrencies.

As the market navigates the evolving regulatory landscape and potential interest rate cuts, the Benzinga Future of Digital Assets event on Nov. 19 offers an unrivaled platform to explore these developments and gain insights from industry leaders.

Read Next: Bitcoin Spikes To $72K, Then Drops $1,300 Following US Employment Report: What Happened?

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