Crypto investment product net inflows see $130m rebound

Weekly
digital
asset
investment
products
broke
a
five-week
outflow
streak
as
crypto
traders
in
the
U.S.
and
Hong
Kong
deployed
more
capital
than
withdrawals. 

According
to

CoinShares,
$130
million
flowed
into
these
crypto
vehicles,
with
the
U.S.
comprising
the
lion’s
share
last
week.
Dwindling
Grayscale
outflows
cushioned
activity
in
the
region
as
GBTC
marked
its
lowest
weekly
withdrawals
in
five
months
at
$171
million. 

Hong
Kong
Bitcoin
(BTC)
ETFs
amassed
$19
million
in
inflows
but
paled
compared
to
Wall
Street
offerings,
which
raked
$135
million
across
some
11
products. Analysts
noted
that
$8
billion
in
ETF
volume
indicated
a
downtrend
since
last
month
saw
a
$17
billion
weekly
average.

“These
volumes
highlight
ETP
investors
are
participating
less
in
the
crypto
ecosystem
at
present,
representing
22%
of
total
volumes
on
global
trusted
exchanges
relative
to
31%
last
month.”

CoinShares
report

Although
market
prices
retraced,
Bitcoin
sentiment
translated
into
inflows.
The
same
could
not
be
said
concerning
crypto’s
second-largest
asset
class,
Ethereum
(ETH),
as
researchers
noted
more
outflows
of
$14
million. 

CoinShares’
analyst
James
Butterfill
wrote
that
ETH
outflows
were
likely
connected
to
the
U.S.
regulatory
activity
around
spot

Ethereum
ETFs.
Since
the
SEC
delayed
decisions
on
the
matter,
skepticism
that
approvals
will
eventually
arrive
has
increased. 

Enforcement
action
against
Ethereum-adjacent
entities
like

Consensys,
Uniswap
and
crypto
operators
like

Robinhood
further
solidified
this
notion. 

Also,
Bitcoin
maxi

Michael
Saylor
told
audiences
that
Ethereum
and
other
altcoins
are
unregistered
crypto
asset
securities,
a
rhetoric
the
SEC
has
long
suggested
either
by
lawsuits
or
refusal
to
classify
ETH
as
a
commodity
or
a
security.

While
the
SEC’s
stance
remains
largely
unclear,
experts
believe
this
trend
may
change
due
to
Congress
bills
and
proposals
that
may

clarify
what
agency
can
supervise
the
crypto
industry.