CoinShares notes $441 million rebound in crypto investment inflows last week

Global crypto investment products at asset managers such as Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares and 21Shares registered net inflows totaling $441 million in the first week of July, marking a turnaround following three weeks of net outflows, according to CoinShares' latest report.

Recent price weakness prompted by Mt Gox bitcoin movements and German government selling pressure is “likely being seen as a buying opportunity,” CoinShares head of research James Butterfill wrote.

Global Bitcoin investment products accounted for some 90% of the net inflows, attracting $384 million. However, this is lower than its usual 99% dominance, with investors allocating across a much broader set of altcoin-based funds over the past week, Butterfill noted.

Solana-based products were a primary beneficiary, attracting $16 million worth of net inflows globally last week, bringing year-to-date inflows to $57 million — the best performance from an altcoin perspective, Butterfill said. 

VanEck and 21Shares both filed with the U.S. Securities and Exchange Commission for spot Solana ETF in the week prior, potentially providing a catalyst for the increased allocation.

However, the SEC previously identified SOL as a security in charges filed against crypto exchanges Binance and Coinbase last year. The Bitcoin and Ethereum spot ETFs were also not approved until CFTC-regulated futures markets and U.S. futures ETFs had been established first.

"This only has a shot to launch sometime in 2025 if we have a new admin in the White House and SEC," Bloomberg Intelligence ETF analyst James Seyffart said. "Even then not guaranteed."

“Ethereum sentiment also seems to have turned, seeing $10 million inflows, but remains the only ETP to have seen net outflow YTD,” Butterfill added.

US spot Bitcoin ETFs lead the net inflows

U.S. spot Bitcoin exchange-traded funds again led last week, accounting for $238.4 million of the net inflows, according to The Block’s data dashboard.

This expanded to $384 million for all U.S.-based Bitcoin investment products, per CoinShares’ data. However, Hong Kong, Switzerland and Canada-based Bitcoin funds also had a strong week, attracting $32 million, $24 million, and $12 million in net inflows, respectively.

German-based funds were the outlier, with $23 million in net outflows, perhaps prompted by the continued selling of assets by the German government — a policy heavily criticized by the independent German Member of Parliament Joana Cotar last week.

Meanwhile, trading volumes across crypto exchange-traded products remained significantly below the $14 billion weekly average this year, generating just $7.9 million last week — reflecting a seasonal pattern of lower volumes in the summer months, Butterfill said. “This represents a 17% lower participation rate compared to the total market for trusted exchanges,” he added.

U.S. spot ETFs again represented the majority of that volume, some $5.98 billion, according to The Block’s data dashboard. However, those volumes are down substantially from a peak in early March as bitcoin approached its latest all-time high of $73,836.

The net inflows contrast a poor week for the largest cryptocurrency by market cap in terms of price, down 8.5% for the period and currently trading for $57,094, according to The Block’s bitcoin price page.

Meanwhile, the GMCI 30, representing a selection of the top 30 cryptocurrencies, fell 9.7% over the past seven days to 118.06.