Skip to content

Crypto Investment Products See Outflows Continue; Altcoins Gain Traction

As cryptocurrency investment products face a prolonged outflow period, altcoins like XRP, Cardano, and Polygon are finding more favor with investors.

XRP logo
XRP logo

Extended Downtrend in Cryptocurrency Investment

The European cryptocurrency investment firm, CoinShares, disclosed in its latest "Digital Asset Fund Flows Report" that the last week witnessed an outflow of $5.1 million from cryptocurrency investment products. This withdrawal marks the continuation of an unfavorable trend, pushing the total outflow over nine weeks to a staggering $423 million.

BlackRock's Bitcoin ETP Application Sparks Hope

Despite the pervasive outflows, the week closed on a hopeful note. BlackRock, a global titan in asset management, initiated the application process for a Bitcoin exchange-traded product (ETP) in the U.S. Though this led to minor inflows, they failed to counterbalance the previous withdrawals, perpetuating the outflow streak.

Regional Inflow-Outflow Overview

The regional analysis revealed that the U.S. and Germany observed minor inflows, with $3.7 million and $2.4 million, respectively. Meanwhile, despite better regulatory conditions in Hong Kong, CoinShares' report shows no significant ETP inflows this year, and the total assets under management (AuM) remain low at $39 million. On the other end of the spectrum, Canada experienced considerable outflows, amounting to $277 million.

Altcoin Crash Triggers New Investments

The recent altcoin price crash prompted investors to boost their positions, leading to inflows totaling $2.4 million. Cryptocurrencies, including XRP, Cardano, and Polygon, witnessed these inflows, receiving $1 million, $0.6 million, and $0.2 million, respectively.

Ether, Tron, and Avalanche Face Hefty Outflows

Ether suffered the largest outflows for the week at $5 million, with Tron and Avalanche trailing behind with outflows of $0.4 million each. Additionally, blockchain equities experienced their largest outflows since FTX, reaching $12.3 million.

Potential Game-Changer: BlackRock's Bitcoin ETF

On June 15, BlackRock applied for the first Bitcoin spot exchange-traded fund (ETF) in the United States. Upon approval, this ETF would provide investors with a regulated and accessible avenue to Bitcoin investment. This could significantly shape the future acceptance and adoption of cryptocurrency investment products in the U.S.