Crypto exchange-traded products (ETPs), primarily Bitcoin funds, have broken a month-long negative streak with substantial inflows last week. This rebound indicates renewed demand for digital asset investments despite broader market weakness and geopolitical tensions.
CoinShares reported that crypto investment products recorded approximately $1 billion in inflows, ending a five-week period of multi-billion dollar outflows. The US market was a significant contributor to prior negative flows. Bitcoin ETPs, previously showing the weakest performance, have now surged with over $881 million in inflows. Short Bitcoin investment products saw $3.7 million in inflows, suggesting continued market polarization.
Ethereum investment products also experienced their strongest week since mid-January with $117 million in inflows. Solana funds saw $53.8 million in inflows last week. The US led inflows with $957 million, alongside contributions from Canada, Germany, and Switzerland.
James Butterfill, head of research at CoinShares, attributed the sentiment shift to prior price weakness, a break below key technical levels, and renewed accumulation by large Bitcoin holders. Client discussions have shifted from reducing exposure to identifying entry points.
US spot Bitcoin ETF investors have shown resilience, with cumulative outflows since a past crash being a small fraction of total inflows since their January debut. Experts note that even newer ETF investors appear unfazed by market conditions and are "buying the dip."
As of this writing, Bitcoin is trading at $65,582, down 2.2% daily.