Amid a turbulent week for crypto prices, Bitcoin exchange-traded funds (ETFs) gained nearly $2 billion worth of BTC deposits, according to a new report from CoinShares.
The price of Bitcoin plunged below $69,000 on Friday, after previously stabilizing following hotter-than-expected jobs data from the U.S. Labor Department. And as Bitcoin goes, so often too does the rest of the crypto market.
All the while, Bitcoin ETFs were booming. Such funds collectively saw $1.97 billion worth of Bitcoin inflows last week, with June 3 marking the third largest daily inflow on record. Inflows are the amount of digital assets being deposited into exchange-traded products, like ETFs, and are the result of sales, trades, purchases, or owners wanting to move their funds across different wallets.
Bitcoin ETF inflows have totaled nearly $17 billion so far in 2024, with a majority of Bitcoin movement happening in the United States.
Broadly, last week was the best overall for crypto funds since March, with just over $2 billion in total—the vast majority of which came from Bitcoin funds. It's an enormous jump from the previous week's tally of just $185 million worth of inflows.
Ethereum funds saw inflows totaling $69 million, while Solana had $700,000 worth of movement last week. Over the past five weeks, $4.3 billion worth of assets have flowed into crypto funds, while trading volumes for crypto ETPs rose 55% compared to the previous week.
“Unusually, inflows were seen across almost all providers, with a continued slowdown in outflows from incumbents,” wrote CoinShares in its weekly blog. “We believe this turn around in sentiment is a direct response to weaker-than-expected macro data in the U.S., bringing forward monetary policy rate cut expectations.”
However, short Bitcoin funds—which bet against the world’s largest crypto asset—saw outflows for the third week in a row. Investors had withdrawn $5.3 million by Friday.
It follows news that open interest in Bitcoin reached a new peak of almost $38 billion last Thursday. Alongside that bullish long-short ratio, there appears to be positive speculation that Bitcoin could be set to reach an all-time high price in the coming weeks after previously setting a high mark above $73,700 in March.
That also comes alongside the expectation that incoming interest rate cuts in the U.S. and Europe will stimulate capital inflow into risk assets.
Edited by Andrew Hayward and Stacy Elliott
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