- Bitcoin funds added $1.97 billion worth of Bitcoin inflows last week, marking the biggest week for crypto ETFs since March.
- Ethereum funds saw inflows totaling $69 million, while Solana had $700,000 worth of inflows last week.
- The surge in inflows into Bitcoin ETFs coincided with Bitcoin’s price plunging below $69,000 amid broader crypto market turbulence.
Crypto funds saw over $2 billion in inflows last week, the largest amount since March. The gains were driven primarily by Bitcoin exchange-traded funds (ETFs), even as crypto prices tumbled.
Bitcoin ETFs See Near-Record Inflows
Bitcoin ETFs brought in $1.97 billion worth of Bitcoin deposits last week, according to CoinShares. June 3 marked the third largest daily inflow on record. Inflows into Bitcoin ETFs have now totaled nearly $17 billion so far in 2024. The majority of Bitcoin movement is happening in the United States.
Overall Sentiment Improves
The large inflows were seen across almost all crypto ETF providers. CoinShares noted a “continued slowdown in outflows from incumbents.” They believe the turnaround in sentiment is due to weaker U.S. macro data, which has pushed expectations for earlier rate cuts.
Short Bitcoin Funds See Outflows
While Bitcoin ETFs saw huge inflows, short Bitcoin funds that bet against the cryptocurrency had outflows for the third consecutive week. Investors withdrew $53 million from these funds last week.
Bullish Indicators for Bitcoin
The inflows come alongside other bullish indicators for Bitcoin. Open interest in BTC derivatives hit a record high last week. Some analysts believe Bitcoin could be poised to reach a new all-time high soon, especially if central banks cut rates as expected.
Conclusion
Bitcoin ETFs saw their best week since March, taking in nearly $2 billion in new deposits. The surge comes even as crypto prices fell last week, indicating investors see potential for Bitcoin to rebound. More dovish central bank policy could further boost appetite for the leading cryptocurrency.
