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.