Crypto

Bitcoin Bags $1.97B Inflows, Ether Sees Highest Institutional Buying Since March

Bitcoin leads with $1.97B inflows, Ether sees $70M, total crypto assets surpass $100B for first time since March.

By Max Weldon

6/10, 10:17 EDT
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Key Takeaway

  • Crypto investment products saw $2 billion in inflows last week, with Bitcoin leading at $1.97 billion and Ether at nearly $70 million.
  • Trading volumes in crypto ETPs surged 55% to $12.8 billion, pushing total assets under management above $100 billion for the first time since March.
  • SEC's approval of spot Ether ETFs is expected to channel $5-10 billion into ETH products, potentially fueling a year-end rally.

Record Inflows into Crypto Products

Crypto investment products saw a significant surge in inflows last week, with nearly $2 billion added, extending a five-week run to over $4.3 billion, according to a report by asset manager CoinShares. Trading volumes in exchange-traded products (ETPs) also rose sharply, reaching $12.8 billion for the week, a 55% increase from the previous week. Bitcoin led the charge with over $1.97 billion in inflows, while ether (ETH) experienced its best week since March, attracting nearly $70 million.

CoinShares analyst James Butterfill noted, "Unusually, inflows were seen across almost all providers, with a continued slowdown in outflows from incumbents." This positive price action pushed total assets under management (AuM) above the $100 billion mark for the first time since March this year. The uptick in ETH buying was likely a reaction to the SEC's surprise decision to allow spot ether ETFs, a historic milestone for the second-largest cryptocurrency.

Bitcoin and Ether Market Dynamics

Bitcoin and ether remained relatively stable over the weekend following a $400 million liquidation event on Friday, which dampened market momentum. Analysts at Presto Research expect market volatility to return this week, driven by macroeconomic catalysts such as the Consumer Price Index (CPI) release on Wednesday, the Federal Open Market Committee (FOMC) meeting on Thursday, and a speech by Janet Yellen on Friday.

The market saw a record leverage build-up on bitcoin futures, which cost bulls dearly as the market plunged following the release of stronger-than-expected non-farm payrolls (NFP) figures. The U.S. economy added 275,000 jobs compared to the expected 185,000, causing BTC to drop from $71,000 to $69,000. Open interest in futures contracts slid from $99 billion to $60 billion, indicating a significant paring of bets by traders. BTC traded just over $69,400 in early European hours on Monday, while ETH traded around $3,660.

ETH's Potential Rally

The approval of key regulatory filings tied to ETH ETFs by the U.S. Securities and Exchange Commission (SEC) in May has set the stage for a potential rally in ETH products. The SEC approved documents for eight ETFs from major players like VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy, and BlackRock for listing on major exchanges such as Nasdaq, NYSE Arca, and Cboe BZX.

Ed Hindi, Chief Investment Officer at Tyr Capital, expressed optimism about the future of ETH, stating, "$5-10 billion of fresh capital could be channeled through ether products in the short to medium term. This could fuel an end-of-year rally in ETH and its ecosystem to new record highs." Hindi also mentioned that a price target of $10,000 in 2024 is now a reasonable target, especially considering ETH's deflationary nature.

Street Views

  • James Butterfill, CoinShares (Bullish on Bitcoin and Ether):

    "Unusually, inflows were seen across almost all providers, with a continued slowdown in outflows from incumbents. Positive price action saw total assets under management (AuM) rise above the $100 billion mark for the first time since March this year."

  • Ed Hindi, Tyr Capital (Bullish on Ether):

    "$5-10 billion of fresh capital could be channeled through ether products in the short to medium term. This could fuel an end-of-year rally in ETH and its ecosystem to new record highs."
    "A price target of $10,000 in 2024 is now a reasonable target especially when other supportive factors, like ETH now being deflationary, are taken into consideration."