Bitcoin
Ethereum ETFs See $2.2 Billion in Inflows as Bitcoin Gains Political Support
CoinShares revealed that digital asset investment products saw net inflows of $245 million last week.
According to the company’s weekly report, trading volume for exchange-traded products (ETPs) reached its highest level since May at $14.8 billion, thanks to the launch of spot Ethereum ETFs in the US.
Total assets under management (AUM) for crypto ETPs rose to $99.1 billion, and their year-to-date flows hit a record $20.5 billion.
Bitcoin attracts renewed confidence
Bitcoin saw inflows of $519 million last week, bringing its total flows for the month to $3.6 billion and for the year to $19 billion.
James Butterfill, head of research at CoinShares, attributed the inflows to renewed confidence in the asset, which has been the subject of recent discussions about being a reserve asset for the U.S. government.
During the Nashville Bitcoin conference, US politicians including Republican presidential candidate Donald Trump and pro-Bitcoin Senator Cynthia Lummis proposed making Bitcoin a strategic asset of the Treasury.
Notably, Senator Lummis introduced a bill that would see the US reserve accumulate 1 million BTC in five years. On the other hand, Trump swore to make the US “a Bitcoin superpower” and ensure the government never sells the 210,000 BTC it already holds.
Ethereum ETFs
Meanwhile, the Ethereum debut ETFs have resulted in the largest inflows into the digital asset since December 2020. According to a CoinShares report, the products saw inflows totaling $2.2 billion, which resulted in a 542% increase in trading volumes.
Butter filling he said:
“This number is somewhat controversial as Grayscale seeded its new Mini Trust ETF (the week before) with capital from its closed-end fund ($1 billion), which may help explain the steady stream of outflows over the past few years.”
He also noted that flows were impacted by Grayscale’s existing ETHE fund, which saw $1.5 billion in exitsresulting in a net outflow of $285 million for Ethereum ETPs.
Butterfill added that these departures were similar to those seen at the company Trust in Bitcoin in January 2024, after the Securities and Exchange Commission (SEC) approves ETFs for trading.
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Posted in: Bitcoin, Cryptocurrency