CoinShares: Digital Asset Funds See $2 Billion Inflows Amid Anticipation of Rate Cuts

Significant
Inflows
in
Digital
Asset
Funds

Digital
asset
investment
products
experienced
substantial
inflows
totaling
$2
billion
in
the
first
week
of
June,
according
to

CoinShares.
This
marks
a
notable
surge
in
investor
interest,
likely
fueled
by
expectations
of
upcoming
rate
cuts.

Over
a
span
of
five
weeks,
inflows
have
now
reached
$4.3
billion.
Trading
volumes
in
exchange-traded
products
(ETPs)
also
saw
a
significant
rise,
hitting
$12.8
billion
for
the
week—an
increase
of
55%
from
the
previous
week.

Bitcoin
and





Ethereum
Lead
the
Way

Bitcoin
(BTC)
remained
the
primary
focus
for
investors,
attracting
$1.97
billion
in
inflows
during
the
week.
Ethereum
(ETH)
also
witnessed
considerable
interest,
seeing
its
best
week
since
March
with
inflows
totaling
$69
million.
This
surge
is
attributed
to
the
SEC’s
unexpected
decision
to
permit
spot-based
ETFs.

Regional
Insights
and
Market
Sentiment

In
the
United
States,
inflows
were
particularly
strong,
amounting
to
$1.98
billion.
The
first
day
of
the
week
saw
the
third-largest
daily
inflow
on
record,
with
the
iShares
Bitcoin
ETF
now
surpassing
Grayscale
with
$21
billion
in
assets
under
management
(AuM).

Market
sentiment
appears
to
have
shifted
in
response
to
weaker-than-expected
macroeconomic
data
from
the
US,
bringing
forward
expectations
for
monetary
policy
rate
cuts.
This
positive
sentiment
has
driven
total
AuM
above
the
$100
billion
mark
for
the
first
time
since
March.

Altcoins
and
Other
Investment
Products

While
Bitcoin
and
Ethereum
dominated
the
inflows,
some
altcoins
also
saw
minor
activity.
Notably,
Fantom
(FTM)
and
XRP
recorded
inflows
of
$1.4
million
and
$1.2
million,
respectively.

For
the
third
consecutive
week,
short-bitcoin
products
experienced
outflows,
totaling
$5.3
million.
This
trend
indicates
a
waning
interest
in
bearish
bets
on
Bitcoin.

Unusually,
inflows
were
observed
across
almost
all
providers,
with
a
continued
slowdown
in
outflows
from
incumbents.
This
widespread
interest
underscores
a
broader
positive
market
sentiment.

Image
source:
Shutterstock

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