Digital Asset Investment Products See Significant Inflows in Early June

The digital asset investment market started June on a positive note, with significant inflows reported across various providers. According to a report by CoinShares, the first week of June saw digital asset investment products gather over $2 billion in inflows, bringing the five-week total to $4.3 billion.

Trading Volume Surge

The report highlighted a notable increase in trading volumes for exchange-traded products (ETPs), which surged to $12.8 billion in the first week of June. This represents a 55% increase compared to the previous week, indicating heightened investor activity and interest in digital assets.

Broad Inflows Across Providers

CoinShares observed that almost all providers of crypto ETPs experienced inflows during this period. This widespread investment pattern is unusual and is attributed to weaker-than-expected macroeconomic data from the U.S., which has influenced monetary policy expectations. CoinShares stated:

“We believe this turnaround in sentiment is a direct response to weaker than expected macro data in the U.S., bringing forward monetary policy rate cut expectations.”

As a result of the positive inflows and price action, the total assets under management (AUM) for digital asset products rose above $100 billion for the first time since March 2024.

Performance by Providers

Among the digital asset investment product providers, iShares and Fidelity recorded the highest inflows:

- iShares ETFs: $948 million in inflows
- Fidelity ETFs: $680 million in inflows

Conversely, Grayscale Investments and CoinShares XBT were the only providers to record outflows for the week.

Ethereum and Bitcoin Lead the Inflows

Bitcoin (BTC) continued to dominate the ETP space, recording $1.97 billion in inflows for the week. However, Ethereum (ETH)-based products also saw significant investment, with total inflows of $69 million, marking their best week since March. CoinShares attributed this surge to the recent approval of Ether-based spot ETFs by the U.S. Securities and Exchange Commission (SEC).

Altcoin-Based ETPs

While Bitcoin and Ethereum led the inflows, altcoin-based ETPs saw minor activity. Fantom (FTM) and XRP (XRP) recorded inflows of $1.4 million and $1.2 million, respectively.

Conclusion

The early June inflows into digital asset investment products reflect a positive shift in investor sentiment, likely driven by macroeconomic factors and regulatory developments. With significant investments in Bitcoin and Ethereum products, and a surge in trading volumes, the digital asset market is showing robust growth and increased investor confidence. This trend is expected to continue as more institutional and retail investors explore digital assets as viable investment opportunities.