The cryptocurrency market witnessed a remarkable turnaround in June, with digital asset investment products recording a staggering $2 billion in inflows. This positive trend is particularly notable for Ethereum-based products, which saw their best week of inflows since March.
Crypto Investment Products Attract $2 Billion in Inflows
According to the latest report from CoinShares, the digital asset investment product landscape experienced a significant influx of capital in June. The asset manager revealed that crypto investment products gathered over $2 billion in inflows, bringing the total for the past five weeks to a remarkable $4.3 billion.
The report also highlighted a surge in trading volumes for exchange-traded products (ETPs), which reached $12.8 billion in the first week of June – a 55% increase compared to the previous week. Interestingly, CoinShares noted that this turnaround in sentiment is likely a direct response to weaker-than-expected macroeconomic data in the United States, which has brought forward expectations of monetary policy rate cuts.
“We believe this turnaround in sentiment is a direct response to weaker than expected macro data in the U.S., bringing forward monetary policy rate cut expectations.”
— CoinShares
Ethereum Products Shine, Outperforming Bitcoin
While Bitcoin (BTC) continued to dominate the ETP space with $1.97 billion in inflows for the week, Ethereum (ETH)-based products also made a strong showing. CoinShares reported that Ether investment products saw a total inflow of $69 million, their best performance since March.
The asset manager believes this positive trend for Ethereum products is likely a response to the recent approval of spot Ether ETFs in the United States. On May 23, the Securities and Exchange Commission officially approved several spot ETH ETFs, which may have contributed to the increased investor interest in Ethereum-based investment vehicles.
Altcoin Activity Remains Muted
In contrast to the strong performance of Bitcoin and Ethereum, altcoin-based ETPs saw relatively muted activity. CoinShares reported minor inflows for Fantom (FTM) and XRP (XRP), amounting to $1.4 million and $1.2 million, respectively.
The cryptocurrency market’s resurgence in June, particularly the standout performance of Ethereum-based products, highlights the continued evolution and maturation of the digital asset ecosystem. As investors navigate the dynamic crypto landscape, the approval of spot Ether ETFs and the potential for monetary policy changes appear to be driving increased interest and capital allocation.
