Bitcoin Investment Sentiment Turned Bullish After Largest Weekly Fund Inflow in a Year

The total digital asset inflows was $199 million, reversing nearly half of the previous nine consecutive weeks of outflows.

AccessTimeIconJun 26, 2023 at 4:50 p.m. UTC
Updated Jun 26, 2023 at 7:14 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Digital asset investment products witnessed the largest single weekly inflows in a year - mostly dominated by bitcoin-related products - after nine consecutive weeks of outflows, according to a report from European digital asset manager CoinShares.

Bitcoin-related products were the primary asset for inflows, seeing $188 million in total, representing 94% of the total flows. Short-bitcoin products saw total outflow of $4.9 million, for the ninth consecutive week, according to the report.

This comes after a number of high profile institutions filed for exchange traded funds (ETF) last week and bitcoin (BTC) price hit one-year high. Asset management giant BlackRock filed an application to roll out a spot bitcoin ETF on June 15. There were also re-filings for similar products by well-known TradFi firms such as Invesco and WisdomTree.

“We believe this renewed positive sentiment is due to recent announcements from high profile ETP issuers that have filed for physically backed ETFs with the U.S. Securities & Exchange Commission,” the report said.

The inflows totalled $199 million, which reversed almost half of the prior nine consecutive weeks of outflows. The report noted that Exchange Traded Product (ETP) trading volumes totalled $2.5 billion for the week.

Meanwhile, Ethereum saw inflows of $7.8 million, representing only 0.1% of assets under management (AUM), relative to bitcoin's inflows of 0.7%, demonstrating less of an appetite for ethereum than bitcoin at present.

However, the positive sentiment didn’t flow through into altcoin investments, according to the report. “This turn in sentiment didn’t trickle down to altcoins with only very minor inflows into XRP and Solana totalling $0.24m and $0.17m respectively. But the improved sentiment did encourage some investors to buy multi-asset investment ETPs, with $8m inflows last week,” the CoinShares report added.

Edited by Aoyon Ashraf.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Lyllah Ledesma

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.