Digital assets have experienced a notable increase in investments, with inflows into various cryptocurrency products reaching $2 billion in June. This substantial infusion has boosted the total assets under management (AUM) across different platforms, pushing it beyond the $100 billion threshold, a level not seen since March 2024.
Ethereum Captures Investor Attention
Ethereum investment products have notably seen the best week since March, capturing $69 million in inflows. This accomplishment aligns with the latest approval of Ether-based spot Exchange-Traded Funds (ETFs) by the Securities and Exchange Commission. Therefore, this surge in the investors’ confidence could be a result of these developments that have enhanced its attractiveness in the volatile crypto market.
Meanwhile, Bitcoin remains a dominant force in the ETP landscape, with $1.97 billion recorded for the week, underscoring its continued appeal to the investment community.
Diverse Crypto ETPs Witness Robust Activity
Exchange-traded products (ETPs) dealing in cryptocurrencies also experienced a 55% increase in trading volumes, soaring to $12.8 billion in the initial week of June. Significantly, this includes substantial contributions from major ETP providers, with iShares and Fidelity ETFs leading. They reported inflows of $948 million and $680 million, respectively.
Moreover, the overall positive performance in the crypto market is considered a direct response to the unexpected downturn in U.S. macroeconomic data, which has shifted investor expectations towards potentially relaxed monetary policies sooner than anticipated.
Inflows into alternative coins like Fantom and XRP, though smaller, were still notable, with figures standing at $1.4 million and $1.2 million, respectively. These inflows indicate a growing investor interest in diversifying beyond the dominant Bitcoin and Ethereum bases.
This revitalization of the crypto investment landscape in June demonstrates a robust rebound and dynamic market adaptability to global economic shifts. With the total market AUM climbing and record-breaking weekly inflows, the sector looks poised for continued growth and investor interest in the forthcoming months.
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