- After a five-week hiatus, institutions have resumed investing in crypto products, according to CoinShares.
- Last week, digital asset investment products saw inflows of $130 million following four weeks of outflows.
- Bitcoin (BTC) ETPs led the way with $144 million in inflows, while Ethereum (ETH) products suffered $14.4 million in outflows.
Following a five-week break, institutions have resumed investing in crypto products, with Bitcoin (BTC) ETPs leading the way, according to CoinShares’ latest report.
Institutions Resume Crypto Investments
As per the latest Digital Asset Fund Flows report by CoinShares, digital asset investment products saw inflows for the first time in five weeks, totaling $130 million. This comes after a period of four weeks of outflows. However, ETP (exchange-traded product) volumes continue to subside, with $8 billion for the week compared to the $17 billion average in April. This suggests that ETP investors are currently less active in the crypto ecosystem, representing 22% of total volumes on global trusted exchanges relative to 31% last month.
Regional Inflows and Outflows
Regionally, the US led the inflows with $135 million. Switzerland and Hong Kong also saw crypto ETP inflows of $14 million and $19 million, respectively. However, Canada and Germany experienced outflows of $20 million and $15 million, respectively. Interestingly, after a prior week of record inflows, Hong Kong saw just $19 million inflows, suggesting that the majority of the first-week post-Bitcoin ETF launches were seed capital.
Bitcoin ETPs Lead the Way
Bitcoin (BTC) ETPs, as usual, led the way in crypto products with $144 million in inflows. Other cryptocurrencies like Solana (SOL), Polkadot (DOT), XRP, and Litecoin (LTC) also enjoyed inflows of $5.9 million, $1.2 million, $0.6 million, and $0.1 million, respectively. However, Ethereum (ETH) products suffered $14.4 million in outflows. This can be attributed to the low interaction by the US regulators with ETF (exchange-traded fund) issuer applications for a spot Ethereum ETF, which has increased speculation that the ETF approval is not imminent.
Conclusion
The latest data from CoinShares indicates a resurgence in institutional interest in crypto products, particularly Bitcoin ETPs. However, the subdued ETP volumes suggest a decreased participation from ETP investors in the crypto ecosystem. With regulatory uncertainties still looming, particularly for Ethereum ETFs, the landscape of institutional investment in crypto products remains dynamic and subject to change.
