For the first time in five weeks, crypto investment products have seen impressive inflows, amounting to $130 million. However, ETP volumes have continued to decline. Compared to the April average of $17 billion, they were $8 billion for the week.
These volumes indicate that investors in ETPs, or exchange-traded products, are currently less active in the crypto ecosystem than before. Compared to 31% in April, their activity comprises less than a quarter of the total volume on trusted global exchanges.
A crypto ETP is a category of investment vehicle backed by one or more cryptocurrencies. Examples of crypto ETPs are 21Shares and Fidelity Physical Bitcoin.
Inflows and outflows by country
The majority of inflows was in the US – $135m, with Grayscale’s inflows at their weekly lowest since January. This is still a positive sign, considering that Grayscale’s spot Bitcoin ETF saw outflows of Bitcoin worth over $640 million on March 18. This was the day with the highest outflows for the fund since it was converted to a spot ETF on January 11.This week, the inflows totaled $171 million.
Hong Kong and Switzerland followed the US with inflows of $19 million and $14 million, respectively. Hong Kong fund inflows were very low, especially compared to the previous week, in which they hit a record. This suggests that most of the launches in the first week after Bitcoin ETFs officially launched in the city state were seed capital.
Tendencies remain bearish in Canada and Germany. The two countries’ outflows totaled $20 million and $15 million this week. Their year-to-date outflows reached $660 million in total.
Inflows and outflows by cryptocurrency
The leading cryptocurrencies were the only notable ones here – Bitcoin and Ethereum, the two biggest by market cap. Despite a weak month, Bitcoin is recovering with inflows of $144 million. Short ETP positions in the flagship crypto have seen outflows of $5.1 million, with outflows totaling $18 million in the last eight weeks.
Ethereum continues to struggle. Not only was it recently found to be the most-hacked crypto in 2024, but it has recently emerged that an ether ETF will not launch anytime soon. Such are the speculations as US regulators have not been very active in interacting with ETF issuers and their applications for a spot ether ETF. Ether outflows amounted to $14 million last week.
