As per the “Digital Asset Fund Flows Report” published by CoinShares on June 19, it was disclosed that cryptocurrency investment products witnessed a total outflow of $5.1 million in the previous week. This outflow has extended the ongoing trend of outflows for nine consecutive weeks, which has resulted in a cumulative outflow of $423 million.
According to the report, despite the decline observed, there was a faint indication of optimism towards the conclusion of the week. This was due to the announcement that BlackRock, a prominent asset management company, had made an application for a Bitcoin exchange-traded product (ETP) valued at $26,943 in the United States. Although this development resulted in minor inflows, they were not substantial enough to counterbalance the earlier outflows recorded during the week. Consequently, the outflows trend continued.
Upon analyzing the regional distribution, it was observed that both the United States and Germany witnessed insignificant inflows of $3.7 million and $2.4 million, respectively. The United States continued to maintain its leading position in terms of total inflows year-to-date, accumulating $147 million, while Canada struggled with outflows amounting to $277 million. James Butterfill, the author of CoinShares’ report, commented, “Despite the regulatory environment in Hong Kong showing signs of improvement, we have not observed any substantial inflows into ETPs year-to-date. Furthermore, the total assets under management (AuM) remain low at $39 million.”
CoinShares reported that the decline in altcoin prices during the previous week acted as a stimulus for investors to augment their holdings. As a result, inflows amounting to $2.4 million were recorded. The focus of these inflows were prominent cryptocurrencies such as XRP ($0.49), Cardano ADA ($0.260), and Polygon MATIC ($0.6106), which received sums of $1 million, $0.6 million, and $0.2 million, respectively.
Conversely, Ether (ETH) ($1,731) witnessed the most substantial outflows during the week, amounting to $5 million. Furthermore, Tron (TRX) ($0.0692) and Avalanche (AVAX) ($11.46) both experienced outflows of $0.4 million each. In a similar context, CoinShares highlighted that “Blockchain equities observed the most significant outflows since FTX, totaling $12.3 million.”
On June 15, BlackRock submitted an application for the initial Bitcoin spot exchange-traded fund (ETF) in the United States. Should the application be granted, the ETF would offer investors a regulated and convenient means of gaining exposure to Bitcoin. oinbase">Coinbase Custody Trust Company would serve as the custodian for the fund’s Bitcoin holdings, while the Bank of New York Mellon would handle fiat assets. The ETF’s Bitcoin price would be updated every 15 seconds, based on the CF Benchmarks index. The approval of BlackRock’s application could have significant implications for the broader acceptance and adoption of cryptocurrency investment products in the United States.
#Altcoin #XRP #Cardano #Polygon #Investments
