Crypto ETP Inflows Hit $1.2B Despite Price Dip

Crypto ETP Inflows Surge Amidst Market Dip

Despite significant price drops in major cryptocurrencies like Bitcoin and Ether, investment in cryptocurrency exchange-traded products (ETPs) remained robust last week. CoinShares reported $1.24 billion in inflows for the week ending Friday, setting a new record.

This brings the year-to-date inflow for crypto ETPs to a historic high of $15.1 billion, according to James Butterfill, CoinShares' head of research. Total assets under management (AUM) also saw a slight increase, reaching $176.3 billion.

Bitcoin ETPs Lead the Charge

Bitcoin ETPs experienced their second consecutive week of inflows, totaling $1.1 billion. This is notable considering Bitcoin's price dropped from approximately $108,800 to $103,000 during the same period. Butterfill suggests this indicates investors are buying the dip, a strategy of acquiring assets at a lower price anticipating future growth.

Further supporting this theory, minor outflows were observed from short-Bitcoin products, totaling $1.4 million.

Crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares

Market Sentiment Shifts

The Crypto Fear & Greed Index reflected a temporary shift to "Fear" on Sunday, after a month of "Greed," before recovering to "Neutral" on Monday. CoinShares attributes the slight cooling of ETP sentiment towards the end of the week to the US Juneteenth holiday and news regarding the Iran conflict.

Crypto Fear & Greed index as of Monday. Source: Alternative.me

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