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Net inflows of cryptocurrency investment products see a rebound of $130 million
Weekly digital asset investment products broke a five-week streak of outflows as cryptocurrency traders in the United States and Hong Kong deployed more capital than withdrawals.
Second CoinShares, $130 million flowed into these crypto vehicles, with the US taking the lion’s share last week. The decline in Grayscale outflows dampened activity in the region as GBTC marked its lowest weekly withdrawals in five months at $171 million.
Hong Kong Bitcoin (Bitcoin) The ETFs have amassed inflows of $19 million, but they pale in comparison to Wall Street’s offerings, which have pulled in $135 million across about 11 products. Analysts noted that $8 billion in ETF volume indicates a downward trend as last month saw a weekly average of $17 billion.
“These volumes highlight that ETP investors are currently participating less in the crypto ecosystem, accounting for 22% of total volumes on global trusted exchanges compared to 31% last month.”
CoinShares Report
Although market prices have retreated, Bitcoin sentiment has translated into inflows. The same cannot be said of the second largest asset class in cryptocurrencies, Ethereum (ET), as researchers noted an additional $14 million in outflows.
CoinShares analyst James Butterfill wrote that ETH outflows were likely linked to US regulatory activity on spot Ethereum ETF. Since the SEC delayed decisions on the matter, skepticism has increased regarding the arrival of approvals.
Enforcement action against Ethereum-adjacent entities such as ConsentsUniswap and crypto operators like Robin Hood further consolidated this notion.
Also, Bitcoin maxi Michael Saylor told the public that Ethereum and other altcoins are unregistered cryptocurrency securities, a rhetoric that the SEC has long prompted through lawsuits or refusal to classify ETH as a commodity or security.
While the SEC’s position remains largely unclear, experts believe this trend could change due to congressional bills and proposals clarify which agency can oversee the cryptocurrency industry.