On June 19, European cryptocurrency investment firm CoinShares public its “Digital Asset Fund Flows Report,” revealing that cryptocurrency investment products saw withdrawals totaling $5.1 million last week. The withdrawals contributed to the continuation of a losing streak of nine weeks, resulting in a cumulative total of USD 423 million.
The report noted that despite this downward trend, there was a glimmer of hope towards the end of the week, when news broke that BlackRock, one of the world’s largest asset managers, had submitted an application for a listed product. Bitcoin ETP (BTC) in United States. This fact gave rise to smaller inflows, but not significant enough to offset the outflows seen earlier in the week. Consequently, the streak of departures persisted.
By region, the United States and Germany registered small deposits, of 3.7 and 2.4 million dollars respectively. The US maintained its lead in terms of total deposits so far this year, accumulating USD 147 million, while Canada suffered withdrawals worth USD 277 million. CoinShares report author James Butterfill added: “Despite improving regulatory conditions in Hong Kong, we have not seen any appreciable deposits in ETPs so far this year, while total assets under management ( AuM) is still low at $39 million.”
According to CoinShares, the previous week’s plunge in altcoin prices served as a catalyst for investors to increase their positions. Consequently, inflows totaling USD 2.4 million were observed. Notable cryptocurrencies such as XRP (XRP), Cardano (ADA) and Polygon (MATIC) were the focus of these deposits, receiving amounts of one million dollars, 0.6 million and 0.2 million dollars, respectively.
On the other hand, Ether (ETH) experienced the largest withdrawals of the week, totaling $5 million. Furthermore, both Tron (TRX) as Avalanche (AVAX) recorded outflows of $0.4 million each. In a similar vein, CoinShares noted: “Blockchain stocks saw the largest withdrawals since the FTX collapse, totaling $12.3 million.”
On June 15, BlackRock filed for the first spot Bitcoin exchange-traded fund (ETF) in the United States. If approved, the ETF will offer investors a regulated and accessible way to get exposure to Bitcoin. Coinbase Custody Trust Company would be the custodian of the fund’s Bitcoin holdings, while Bank of New York Mellon would manage the trust assets. The ETF’s Bitcoin price would update every 15 seconds based on the CF Benchmarks index. Approval of BlackRock’s application could have significant implications for the greater acceptance and adoption of cryptocurrency investment products in the United States.
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