According to the latest weekly report from CoinShares, investment products related to cryptocurrency experienced their first inflow in over a month, reaching $130 million during the previous week. This influx signals a significant change in investor sentiment following weeks of negative flows throughout the crypto market. However, despite the inflow, investor participation in the asset class did not improve, as trading volumes for exchange-traded products (ETPs) continued to decrease.

James Butterfill, head of CoinShares research, highlighted that last week's trading volume amounted to $8 billion, notably lower than April's average of $17 billion. He noted that this decrease in volumes indicates reduced participation from ETP investors in the crypto ecosystem, representing only 22% of total volumes on global trusted exchanges compared to 31% the previous month.

The report revealed that spot Bitcoin ETFs in the US and Hong Kong remained significant drivers of inflows into crypto products. In the US, the Newborn Nine Bitcoin ETFs led to a positive flow of $135 million. Meanwhile, outflows from Grayscale's GBTC decreased, reaching $171 million during the previous week, the lowest weekly outflows since January.

In Hong Kong, newly launched Bitcoin ETFs saw a more modest inflow of $19 million, suggesting that most of the inflows during the first week after the Bitcoin ETF launch were seed capital. However, crypto-related ETPs in Canada and Germany continued to experience outflows, totaling $20 million and $15 million, respectively, bringing year-to-date outflows from these countries to a combined $660 million.

Regarding Ethereum, uncertainty surrounding spot Ethereum ETF products has affected investor confidence in the second-largest digital asset by market capitalization. CoinShares noted that low interaction by US regulators with ETF issuer applications for a spot Ethereum ETF has increased speculation that approval is not imminent, leading to outflows totaling $14 million last week. Similarly, short-Bitcoin recorded $5.1 million in outflows, marking its eighth consecutive week of outflows totaling $18 million. Conversely, other altcoins like Polkadot, XRP, and Solana saw a combined inflow of approximately $8 million.