Crypto investment products saw $2 billion in inflows last week amid rate cut anticipation: CoinShares

Global crypto investment products at asset managers such as Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares and 21Shares registered net inflows totaling $2 billion in the first week of June, a fifth-consecutive week of positive inflows, according to CoinShares' latest report.

Last week’s net inflows matched those for the whole of May, bringing the five-week streak to a total of $4.3 billion and assets under management above the $1 billion level for the first time since March. Trading volume was also up last week, generating $12.8 billion, 55% more than the week prior, CoinShares Head of Research James Butterfill wrote.

“Unusually, inflows were seen across almost all providers, with a continued slowdown in outflows from incumbents,” Butterfill said. “We believe this turn around in sentiment is a direct response to weaker than expected macro data in the U.S., bringing forward monetary policy rate cut expectations.”

Weekly crypto asset flows. Images: CoinShares.

US and Bitcoin continue to dominate, while Ethereum has best inflow week since March

The U.S. market accounted for $1.98 billion of last week’s net inflows amid a record streak for spot Bitcoin exchange-traded funds in the country, now spanning 19 trading days and over $4 billion.

BlackRock’s IBIT spot Bitcoin ETF brought in nearly $1 billion last week alone, surpassing 300,000 BTC in AUM, having overtaken the AUM of Grayscale’s converted GBTC fund the week prior, and now accounting for over $21 billion in assets.

The U.S. spot Bitcoin ETF generated $1.8 billion in net inflows last week combined, with Bitcoin investment products adding $1.97 billion globally. To put that into perspective, the funds absorbed more than two months of new bitcoin mining supply — now averaging 450 BTC per day post-halving — in just one week.

“I don’t think people appreciate how ridiculous this is,” The ETF Store President Nate Geraci said. “Especially for a product that I was told nobody wanted. Now a $60 billion ETF category. In 5 months.”

Responding to queries as to why bitcoin’s price action remained relatively flat last week despite the significant net inflows, Bloomberg ETF analyst Eric Balchunas posted on X, “I've said it before and I'll say it again, the call is coming from inside the house. This is not the ETFs doing, obviously because they are buying like crazy lately, it's bitcoin holders selling or leveraged flushers or whatever. Time and again ETFs go on flow-a-thons and it's met with selling from other holders.”

Meanwhile, Ethereum-based investment products witnessed their best week of net inflows since March, adding $69 million — likely a reaction to the Securities and Exchange Commission’s surprise decision to allow spot Ethereum ETFs in the U.S., Butterfill said.

Bitcoin is up 0.5% over the past week, according to The Block’s prices page, currently trading for $69,396. Ether is down 3.8% in the last seven days at $3,670. The GMCI 30, representing a selection of the top 30 cryptocurrencies, is down 1% during the past week at 141.87.