Crypto funds see inflows for first time in a month

DIGITAL asset investment products had positive inflows for the first time in a month after the prices of cryptocurrencies across the board dropped to their lowest levels in months.

Crypto digital asset products saw inflows totalling US$441 million in the week ended Jul 5, CoinShares International data show, a significant rebound from the US$39 million in outflows the week prior. The major crypto products that CoinShares tracks were overall in the green last week.

Bitcoin digital funds led the pack with nearly US$400 million in inflows, marking a turnaround from a three-week period which saw products for the world’s largest cryptocurrency lose over US$1.2 billion. The substantial inflows came amid a week where the price of Bitcoin briefly dipped to US$54,000, its lowest level since February.

The Bitcoin funds from Fidelity and ProShares had the highest inflows at about US$200 million and US$100 million, respectively. Despite gains for most other Bitcoin products, Grayscale’s fund was still in the red and lost around US$90 million.

Funds backed by the Solana cryptocurrency saw the second-biggest increase and claimed over US$16 million in gains, a 900 per cent increase compared to the previous week. The gains come about two weeks after asset manager VanEck appealed to the US Securities Exchange Commission to obtain approval for a Solana-backed exchange-traded fund (ETF). But the likelihood that the filing goes through is a “long shot”, according to Bloomberg Intelligence analyst James Seyffart.

Inflows for Ether funds were about US$10 million, and Ether Strategy ETF was the biggest winner with about US$6 million in inflows. But Ether-backed products still have overall outflows for the year totalling about US$15 million.

SEE ALSO

Ether ETF hopefuls gear up for approval as soon as mid-July

Solana ETF filing a ‘long shot’ that may attract billions

Bitcoin investors begin to ponder what’s next after ETF mania cools

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Ether gained about 4 per cent to about US$3,000 on Monday (Jul 8) morning while Bitcoin rose around 3 per cent to US$56,500. BLOOMBERG