Key Points
- CoinShares’ analyst James Butterfill revealed $2 billion entered crypto products last week.
- The crypto markets are expecting rate cuts from the Fed.
CoinShares’ analyst James Butterfill’s latest crypto report is out and the notes reveal that $2 billion entered the digital asset funds in the first week of June as the markets expect to see rate cuts from the Fed.
According to the report, this marks the recent 5-week run of inflows to $4.3 billion. Trading volumes in ETPs rose to $12.8 billion for the week which means 55% up from the week before.
Bitcoin was in the spotlight according to the same data, and BTC saw $1.97 billion inflows. Ethereum saw its best week of inflows since March, totaling $69 million. This was most likely a reaction to the US SEC’s decision to allow Ethereum ETFs.
In-depth details on crypto funds flows
The inflows in the crypto products over $2 billion were seen across almost all providers, and there was a continued slowdown in outflows from incumbents, according to the reports.
CoinShares’s Butterfill notes that they believe that this turnaround in sentiment is a direct response to weaker-than-expected macro data in the US which brings forward monetary policy rate cut expectations.
The report notes that positive price action saw total assets under management (AuM) rise above the $100 billion mark for the first time since March.
In terms of regionality, the US saw most of the inflows totaling $1.98 billion last week. Hong Kong came next with $26 million.
BlackRock’s iShares Bitcoin ETF surpassed Grayscale’s BTC ETF with $21 billion of AuM.
Bitcoin was the main focus with $1.97 billion in inflows and short Bitcoin saw outflows for the third week in a row of $5.3 million.
Ethereum recorded its best week from March, totaling $69 million as a result of the SEC’s approval of the ETH ETF listing. The launch of the crypto products is expected to take place in the US as soon as this month.
According to the same report, altcoins saw minor activity, with Fantom and XRP in the spotlight, seeing inflows of $1.4 million and $1.2 million respectively.
