Crypto-related exchange-traded products (ETPs) in Europe experienced a positive trend in net inflows during June and July, marking a reversal from nearly three months of global ETP outflows.
European ETPs witnessed net inflows of €150 million ($162 million) in June, representing their strongest performance since March 2022.
Although July saw a decrease in net inflows to €60 million ($64.92 million), the consecutive months of positive flows followed an outflow of €100 million ($108 million) in May, as indicated by Morningstar data.
The shift in trend followed a period of ETP net outflows lasting almost three months, which changed when BlackRock announced its application for a spot Bitcoin ETF in mid-June. This filing seemed to stimulate interest, with data showing nine straight weeks of outflows amounting to $400 million before June 15, the date of BlackRock’s filing.
Global crypto ETPs also experienced increased flows in June and July, likely influenced by BlackRock’s announcement. According to CoinShares data, a global net inflow of €560 million ($610 million) was recorded during these two months.
However, a recent report from CoinShares indicated a downturn in the third week of August. This is seen as a potential reaction to investor disappointment and fatigue due to the delayed decision by the U.S. Securities and Exchange Commission (SEC) regarding a U.S. spot-based ETF.
In the seven days leading up to August 21, digital asset investment products faced outflows totaling $55 million, according to the report. The uncertainty around the SEC’s stance on a U.S. spot-based ETF was considered a contributing factor to this shift in investor sentiment.
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
