Crypto exchange-traded products saw third-largest inflows of $3.4B, with Bitcoin leading as it surpassed $90,000. Solana faced outflows, while Ether had $183M in new investments. BlackRock saw the highest inflows among issuers, but some faced outflows. Factors behind this trend include concerns about tariffs and the weakening dollar.
In a noteworthy rebound, global cryptocurrency exchange-traded products (ETPs) recorded their third-highest inflows, amounting to a remarkable $3.4 billion during the trading week from April 21 to April 25. This surge is the largest seen since the end of 2024, as indicated by CoinShares in a report released on April 28. The inflows were also a mere 13% shy of the record $3.85 billion achieved in early December 2024.
The renewed appetite for cryptocurrency ETPs comes as Bitcoin (BTC) clawed its way back above the significant $90,000 mark last week, marking a major recovery since its brief retreat in early March, as per data from CoinGecko. This resurgence in Bitcoin’s price acted as a catalyst for heightened investor interest.
Leading the charge, Bitcoin ETPs attracted most of the fresh capital, with $3.18 billion flowing into these products. This influx effectively offset earlier outflows noticeable since the start of April, resulting in a year-to-date inflow of $3.7 billion. Currently, the assets under management (AUM) for Bitcoin ETPs stand at $132 billion, contributing to a total AUM of $151.6 billion across all crypto ETPs.
However, not all was rosy. Solana (SOL) was the exception within the otherwise bullish trend, as Solana-focused investment products suffered outflows of $5.7 million during the same week. On the other hand, Ether (ETH) witnessed a positive turn, garnering $183 million in inflows after an unfortunate eight-week streak of continuous outflows.
Other altcoins also fared well, with Sui (SUI) attracting $20.7 million and XRP (XRP) bringing in $31.6 million in new investment. The overall inflows suggested a robust confidence in crypto ETPs, spanning numerous major issuers from both the United States and Europe.
Among these issuers, BlackRock’s iShares ETFs stood out with $1.5 billion in inflows last week, followed closely by ARK and Fidelity with $621 million and $574 million respectively. However, it’s worth noting that some firms are seeing outflows. For instance, Grayscale came under pressure with $84 million lost in the month-to-date, while ProShares and CoinShares faced outflows of $18 million and $7 million respectively.
As for the driving factors behind this sharp influx, James Butterfill from CoinShares suggests that the shift may be linked to investor concerns regarding tariffs and their potential impact on corporate earnings. Additionally, the weakening of the US dollar seems to have sparked an increased demand for alternative safe-haven assets. The context of these inflows is also relevant as gold prices saw a decline last week, dropping from nearly $3,500 on April 22 to as low as $3,275 the following day, a significant movement observed by TradingView.
