Cryptocurrency Investment Products Experience Highest Weekly Inflow Since July 2022

According to a recent report by CoinShares, the week of June 19-23 witnessed a significant surge in activity surrounding exchange-traded funds (ETFs), resulting in the largest weekly inflow for digital asset investment products since July 2022.

The total inflow for the week amounted to $199 million, putting an end to a nine-week streak of consecutive outflows. Bitcoin dominated the inflows, accounting for $187 million (94% of the total). CoinShares analysts attributed this reversal to the growing interest and activity from ETF issuers:

“The renewed positive sentiment is due to recent announcements from high-profile ETP issuers that have filed for physically backed ETFs with the US Securities & Exchange Commission.”

The rise in Bitcoin inflows can be attributed to institutional interest in ETFs, particularly with BlackRock and Fidelity Investments filing for spot Bitcoin ETFs in June. This institutional involvement played a role in Bitcoin reaching a 2023 high of $31,431 last week.

While Ethereum (ETH) saw a modest increase in inflows, reaching $7.8 million, other altcoins did not experience significant positive movement, except for minor inflows in XRP and Solana (SOL) amounting to $240,000 and $170,000, respectively.

In addition to ETFs, the ProShares Bitcoin Strategy ETF (BITO), a Bitcoin futures fund, also experienced a notable milestone. It recorded its largest weekly inflow in a year, attracting $65.3 million and bringing its total assets to $1 billion.

These positive developments come after Bitcoin’s price dropped below $25,000 in June following separate lawsuits by the US Securities and Exchange Commission against Binance and Coinbase for alleged improprieties.

Furthermore, Bitcoin’s recent high of $31,431 set three new all-time records for national cryptocurrencies, as Argentina, Venezuela, and Lebanon witnessed BTC reach its highest-ever levels against their respective local currencies.

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