9-Week Crypto Investment Outflow Continues

Cryptocurrency Investment Products Witness Outflows for Ninth Consecutive Week

CoinShares, a European cryptocurrency investment firm, released its “Digital Asset Fund Flows Report” on June 19th, which showed that cryptocurrency investment products had outflows amounting to $5.1 million last week. This was the ninth consecutive week of outflows, adding up to a total of $423 million.

The report pointed out that, despite a downward trend, there was a glimmer of optimism at the end of the week when it was announced that BlackRock, one of the world’s largest asset managers, had applied for a Bitcoin exchange-traded product in the US. This caused a minor influx of funds; however, it was not enough to make up for the outflows seen during the week, so the outflows continued.

Examining the regional breakdown, the U.S. and Germany had minor inflows of $3.7 million and $2.4 million, respectively. The U.S. still had the largest amount of inflows year-to-date, totaling $147 million, while Canada had outflows of $277 million. James Butterfill, the author of CoinShares’ report, commented, “Despite the improving regulatory conditions in Hong Kong, we have not seen any significant inflows into ETPs year-to-date and the total assets under management (AuM) remain low at US$39m.”

CoinShares reported that the recent dip in altcoin rates acted as a stimulant for investors to enlarge their holdings. As a result, inflows of $2.4 million were witnessed. Notable cryptos like XRP (XRP), Cardano (ADA), and Polygon (MATIC) were the main beneficiaries of these inflows, obtaining sums of $1 million, $0.6 million, and $0.2 million respectively.

On the contrary, Ether (ETH) had the most significant outflows for the week, amounting to $5 million. In addition, Tron (TRX) and Avalanche (AVAX) had outflows of $0.4 million each. Similarly, CoinShares stated, “Blockchain equities had the most significant outflows since FTX, totaling $12.3m.”

BlackRock’s Bitcoin Exchange-Traded Product Could Have Major Repercussions

The Grayscale Bitcoin Trust is nearing its 2023 highs as buyers become more active, following the filing of a BlackRock exchange-traded fund.

On June 15th, BlackRock submitted a request for the first Bitcoin spot exchange-traded fund (ETF) in the United States. If given the go-ahead, the ETF would offer investors a secure and available route to invest in Bitcoin. Coinbase Custody Trust Company would be responsible for the fund’s Bitcoin assets, while the Bank of New York Mellon would be in charge of fiat assets. The ETF’s Bitcoin value would be adjusted every 15 seconds based on the CF Benchmarks index. The acceptance of BlackRock’s application could have major repercussions for the wider approval and utilization of cryptocurrency investment products in the United States.

Gary Gensler’s position in jeopardy, BlackRock’s debut Bitcoin ETF and other updates: Hodler’s Digest, June 11-17.