Last week, Bitcoin inflows accounted for 94% of all inflows.
As reported by CoinShares on June 26th, the largest weekly inflow of funds into digital asset investment products since July 2022 was spurred by a surge in activity in exchange-traded funds (ETFs).
The week from June 19th to June 23rd saw a significant turn-around for the cryptocurrency sector, with inflows totaling $199 million, ending a streak of nine consecutive weeks of outflows.
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Bitcoin (BTC) investments were particularly noteworthy, accounting for $187 million or 94% of the total inflows.
On June 23rd, Bitcoin achieved the highest price in 2023 at $31,431. This move was attributed to institutional interest in ETFs following filings by BlackRock for spot Bitcoin ETFs in June.
Analysts from CoinShares credit the reversal to rising activity from exchange-traded product (ETP) issuers, stating:
We believe this renewed positive sentiment is due to recent announcements from high profile ETP issuers that have filed for physically backed ETFs with the US Securities & Exchange Commission.
Ether (ETH) witnessed a slight increase in inflows amounting to $7.8 million, seemingly influenced by the Bitcoin inflows. However, other altcoins did not experience significant upward movement, with XRP and Solana (SOL) only recording minor inflows of $240,000 and $170,000, respectively.
Last week also saw significant inflows into the ProShares Bitcoin Strategy ETF — also known as BITO — with its largest weekly inflow raking in $65.3 million and raising its total assets to $1 billion.
These developments follow a period of turmoil in June when Bitcoin fell below $25,000 for the first time since mid-March after the United States Securities and Exchange Commission filed separate lawsuits against Binance and Coinbase alleging securities violations.
The resurgence of ETFs and the substantial inflows last week signify a positive change in the digital asset investment landscape. This recent rally, after a long period of outflows and legal challenges, illustrates the robustness of the cryptocurrency market, raising optimistic expectations for future performance.
