Crypto ETPs See Strong Inflows After Five-Week Outflow Streak
Crypto-related exchange-traded products (ETPs) broke their five-week outflow streak, with a significant weekly inflow of $644 million, as reported by CoinShares.
Improvement in Investor Sentiment
James Butterfill, Head of Research at CoinShares, highlighted the trend reversal as a reflection of the improved investor sentiment in the digital asset sector.
After experiencing 17 days of outflows, crypto ETPs saw inflows every day last week, leading to a 6.3% increase in total assets under management (AUM) from the March 10 low, reaching $134.5 billion.
Bitcoin Reigns Supreme
The report indicates that Bitcoin played a pivotal role in this recovery, attracting $724 million in fresh capital, ending its $5.4 billion outflow streak over the past five weeks.
Most of the activity stemmed from US-listed spot Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust (IBIT) securing $464 million in inflows, followed by Fidelity’s FBTC with $136 million, and ARK 21Shares with $75 million.
- Short-Bitcoin products experienced outflows of $7.1 million, reinforcing a bullish sentiment.
- US-based products accounted for $632 million in inflows, with Switzerland, Germany, and Hong Kong also showing renewed optimism with inflows of $15.9 million, $13.9 million, and $1.2 million, respectively.
XRP Surges, Ethereum Falters
While Bitcoin led the charge, XRP emerged as the top altcoin in terms of inflows, attracting $6.7 million, buoyed by the positive news of the SEC dropping its lawsuit against Ripple Labs.
Solana also saw significant inflows of $6.4 million despite a decline in meme coin activity on the network.
- Polygon and Chainlink recorded more modest gains at $400,000 and $200,000, respectively.
- On the flip side, Ethereum faced the sharpest decline with $86 million in outflows, along with Sui, Polkadot, Tron, and Algorand experiencing redemptions.
Conclusion
The latest data from CoinShares paints a picture of renewed optimism in the crypto ETP market, with Bitcoin leading the way in a strong rebound while altcoins like XRP and Solana also attract significant investor interest.
