Crypto Funds Experience Record Inflow of Funds in 11 Months

In a remarkable turnaround, cryptocurrency investment products witnessed a surge in funds during the period of June 17 to 23, amounting to a staggering $199.1 million. This influx marks the highest recorded since July 2022 and stands in stark contrast to the outflow of $5.1 million witnessed just a week prior. Experts from CoinShares, a leading analytics firm, conducted this assessment.

The positive trend comes as a relief after a prolonged period of losses, with funds experiencing a collective decline of $423 million over the past nine weeks. The surge in trading volume during the period was 1.7 times higher than the average since the beginning of the year. As a result, the combined assets under management (AUM) for all crypto products reached a peak of $37 billion, marking the highest levels since the collapse of Three Arrows Capital.

Of the total inflow, bitcoin products received $187 million, indicating a rise of $0.5 million compared to the previous week. Investors also demonstrated confidence in structures enabling short positions on the primary cryptocurrency, with $4.9 million allocated in contrast to zero dynamics in the preceding reporting period. Experts attribute this positive sentiment to renowned companies filing applications with the U.S. Securities and Exchange Commission (SEC) for the launch of spot bitcoin exchange-traded funds (ETFs). However, it is worth noting that altcoins did not experience the same change in market conditions, remaining unaffected.

Ethereum funds also witnessed a notable inflow of $7.8 million, countering the outflow of $5 million reported in the previous period. Additionally, products based on XRP and Solana raised $0.24 million and $0.17 million, respectively. Meanwhile, the influx of funds into a basket of cryptocurrencies reached $8.1 million, contributing to a decrease in outflow from $10 million since the beginning of the year.

In related news, the ProShares bitcoin futures exchange-traded fund observed a substantial influx of funds, totaling a maximum of $65.3 million for the year, within the past week. Moreover, the trading volume of Grayscale Investments’ bitcoin trust skyrocketed by 400%, surging from $16.1 million to $80 million on June 20. Earlier predictions by Michael van de Poppe, the founder of the Eight trading platform, suggested the initiation of a bull market for bitcoin, setting a target of $40,000.