$2 Billion Crypto Funds Flow Into Market On Rate Cut Buzz
June 11 2024 - 4:30AM
NEWSBTC
The cryptocurrency market is buzzing with renewed optimism as
investment funds witness a historic inflow surge. CoinShares, a
leading digital asset manager, reported a record-breaking $2
billion influx into crypto funds in just one week, surpassing the
entire month of May’s net inflows. This positive trend, now
spanning five consecutive weeks, has propelled total assets under
management (AUM) in crypto funds back above the coveted $100
billion mark, a level last seen in March 2024. Related Reading:
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Bitcoin ETFs Fueling The Fire Bitcoin, the undisputed king of
cryptocurrencies, remains the primary focus of investor interest.
The recent launch and sustained inflows into US-approved spot
Bitcoin ETFs are a major driver of the current market sentiment.
These exchange-traded funds, which allow investors to hold Bitcoin
without directly owning the digital asset, saw $890 million pour in
on June 4th alone, marking their third-largest inflow day ever.
This enthusiasm for Bitcoin ETFs suggests a growing appetite for
regulated and accessible ways to participate in the crypto market,
potentially attracting a broader range of investors. Ethereum
Shines Bright, Altcoins Show Promise While Bitcoin takes center
stage, Ethereum, the second-largest cryptocurrency, is also
enjoying a strong run. Ethereum funds raked in nearly $70 million
last week, marking their best week since March 2024. CoinShares
attributes this positive inflow to investor anticipation
surrounding the upcoming launch of spot Ethereum ETFs in the US.
The approval of these ETFs could further legitimize the Ethereum
ecosystem and unlock significant investment potential. Beyond the
top two coins, altcoins like Fantom and XRP are also experiencing a
resurgence in investor interest, with inflows of $1.4 million and
$1.2 million, respectively. This broader market participation
suggests a potential return of investor confidence across the
crypto landscape. CoinShares said it observed that inflows were
unusually widespread across nearly all providers, coupled with a
continued reduction in outflows from incumbents. They attribute
this shift in sentiment to weaker-than-expected macroeconomic data
in the US, which has heightened expectations for an imminent
monetary policy rate cut. Total crypto market cap at $2.4 trillion
on the daily chart: TradingView.com Crypto Price Stagnation,
Economic Uncertainty Despite the surge in fund inflows,
cryptocurrency prices haven’t exhibited a corresponding significant
upward movement. This disconnect could be attributed to several
factors, including lingering investor uncertainty surrounding the
future of US economic policy. Related Reading: Bitcoin Buoyed By
Big Money: Whales Gobble More BTC, Signaling Bullish Outlook The
current trend of record inflows into crypto funds paints a positive
picture for the future of the market. The increasing popularity of
regulated investment vehicles like spot Bitcoin ETFs signifies
growing institutional acceptance and potentially wider investor
adoption. Featured image from Vecteezy, chart from TradingView
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