In the midst of a significant price drop in altcoins, investment inflows were recorded for XRP, Cardano, and Polygon.
The “Digital Asset Fund Flows Report” was released by CoinShares, a European cryptocurrency investment firm, on June 19. The report disclosed that for the ninth successive week, cryptocurrency investment products saw outflows, this time amounting to $5.1 million. This recent withdrawal has added to a cumulative total of $423 million over the past nine weeks.
However, despite this prevalent trend of outflows, the end of the week brought a flicker of optimism. This emerged following the news that BlackRock, a global titan in asset management, had filed a proposal for a Bitcoin exchange-traded product (ETP) in the United States. While this stirred some minor inflows, they didn’t quite compensate for the earlier outflows observed throughout the week, thereby continuing the outflow streak.
Investigating the geographical distribution, the United States and Germany saw minor inflows of $3.7 million and $2.4 million respectively. The United States sustained its front-runner position in year-to-date total inflows, amassing $147 million, in stark contrast to Canada, which grappled with outflows totaling $277 million. James Butterfill, the author of CoinShares’ report, noted, “Although regulatory conditions in Hong Kong have improved, we haven’t seen any substantial inflows into ETPs year-to-date, with total assets under management (AuM) remaining low at US$39m.”
CoinShares pointed out that the recent altcoin price crash acted as a catalyst, prompting investors to bolster their positions and resulting in inflows of $2.4 million. Popular cryptocurrencies like XRP, Cardano, and Polygon became the recipients of these inflows, acquiring amounts of $1 million, $0.6 million, and $0.2 million respectively.
Conversely, Ether experienced the week’s most significant outflows, amounting to $5 million. Tron and Avalanche followed suit with outflows of $0.4 million each. Similarly, CoinShares mentioned, “Blockchain equities saw the largest outflows since FTX, totaling $12.3m.”
On June 15, BlackRock lodged an application for the first Bitcoin spot exchange-traded fund (ETF) in the United States. Pending approval, this ETF would present investors with a regulated, accessible channel for Bitcoin exposure. Coinbase Custody Trust Company is slated to be the custodian of the fund’s Bitcoin assets, while the Bank of New York Mellon would manage fiat assets. The ETF’s Bitcoin price would be refreshed every 15 seconds based on the CF Benchmarks index. The successful approval of BlackRock’s application could profoundly impact the broader acceptance and adoption of cryptocurrency investment products in the U.S.