European crypto ETP inflows spike in June and July

Quick Take

  • European-domiciled ETP net inflows reached $162 million in June, their best month since March 2022.
  • Net positive inflows continued through July, but August has seen a downturn as investor fatigue over ETF disappointment sets in.

European crypto-related exchange-traded products witnessed net inflows in June and July. The period of inflows reversed an almost three-month period of global ETP outflows.

ETPs based in Europe recorded net inflows of €150 million ($162 million) in June, their best month since March 2022. July's net inflows dipped to €60 million ($64.92 million). However, the two consecutive months of positive net flows come after €100 million ($108 million) of outflows in May, according to data from Morningstar.
CoinShares data revealed an almost three-month period of ETP net outflows before BlackRock announced its spot bitcoin ETF application in mid-June. Data showed outflows totaling $400 million were recorded in the nine straight weeks up to June 15, when the asset manager made its filing.

ETP global inflow increases

Possibly spurred by the BlackRock filing, June and July also saw an uptick of flows into crypto ETPs globally. According to CoinShares data, a global net inflow totaling €560mn ($610 million) was recorded in June and July. However, a report released by CoinShares on Monday showed a downturn in the third week of August. This was taken as a signal of investor disappointment and fatigue as an SEC spot bitcoin ETF decision has yet to happen.
In the seven days to Monday, Aug. 21, digital asset investment products saw outflows totaling $55 million, the report added. "We believe this is in reaction to recent media highlighting that a decision by the U.S. Securities and Exchange Commission in allowing a U.S. spot-based ETF is not imminent," CoinShares analysts told The Block.

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