Booming Crypto Funds Attract $286M Inflows, Ether Dominates Buying: CoinShares Report
Despite recent market turbulence, investor confidence in digital assets remains evident. The latest data reveals significant capital flowing into crypto investment products, with a surprising leader emerging from the pack. This resilience in inflows suggests a deeper conviction among investors, even as major cryptocurrencies navigate price fluctuations.
Crypto Funds Maintain Strong Inflow Streak
According to the recent CoinShares report released on June 2, global crypto funds and exchange-traded products (ETPs) saw net inflows totaling $286 million for the week ending May 30. This impressive figure extends a positive streak to seven consecutive weeks, bringing the cumulative inflows over this period to a substantial $10.9 billion.
While the inflows highlight continued buying interest, the total assets under management (AUM) across these products slightly decreased. AUM declined from an all-time high of $187 billion to $177 billion by the end of the week. CoinShares’ head of research, James Butterfill, attributed this dip in AUM primarily to market volatility, influenced by factors such as uncertainty surrounding US tariffs.
This inflow occurred during a week when Bitcoin (BTC) experienced notable selling pressure, dropping approximately 6% from $110,000 to an intraweek low of $103,400.
Ether ETPs Lead the Charge
Breaking down the inflows by asset, Ether ETPs were the standout performers last week. Products focused on Ethereum attracted a significant $321 million in inflows. This marks the strongest week for Ether-focused products since late December 2024 and indicates a noticeable improvement in investor sentiment towards the second-largest cryptocurrency.
The robust buying into Ether ETPs suggests investors are increasingly comfortable allocating capital to Ethereum, perhaps anticipating future developments or reacting to its recent price performance relative to Bitcoin.
Contrasting Flows: Bitcoin ETPs See Outflows
In contrast to the strong performance of Ether ETPs, Bitcoin ETPs experienced net outflows last week, totaling $8 million. This represents a notable reversal in flow patterns for Bitcoin investment products.
CoinShares noted that this shift followed a New York Court decision related to US tariffs, suggesting that macroeconomic or regulatory news continues to influence investor behavior in the crypto ETP market, particularly for Bitcoin.
Other Assets: XRP Sees Continued Outflows
Beyond the two largest cryptocurrencies, XRP (XRP) investment products recorded the largest outflows among tracked assets last week. XRP ETPs saw $28 million exit, marking the second consecutive week of net losses for the asset class.
This persistent outflow from XRP products suggests a distinct sentiment among investors holding this particular asset compared to those favoring Ether or even Bitcoin, despite the latter’s minor outflows.
What Does This CoinShares Report Tell Us?
The latest CoinShares report provides several key takeaways:
- Overall investor appetite for crypto investment products remains high, evidenced by the prolonged inflow streak and significant weekly total.
- Sentiment towards Ether appears particularly strong, with Ether ETPs attracting the vast majority of last week’s inflows.
- Flows into Bitcoin ETPs are more sensitive to specific market events or regulatory news, as seen with the tariff court decision impact.
- Performance varies significantly across different altcoins, with XRP seeing sustained selling pressure.
This data paints a picture of a dynamic market where investors are actively rebalancing portfolios and reacting to both broad market trends and specific asset narratives. While Bitcoin remains the dominant force, Ether is clearly capturing significant investor attention and capital flow at this time.
Summary: Ether Leads Resilient Inflows
In conclusion, the week ending May 30 saw crypto funds successfully attract $286 million in net inflows, extending a positive trend. This resilience occurred despite a dip in total AUM and market volatility. The highlight was undoubtedly the performance of Ether ETPs, which single-handedly drove the overall inflows with a robust $321 million. Conversely, Bitcoin ETPs experienced minor outflows, and XRP products saw the largest withdrawals. This CoinShares report underscores a potentially shifting landscape in investor preference within the crypto investment products space, with Ether currently enjoying a strong tailwind of buying interest.
