With $441 mn, crypto funds witness inflows for first time in a month

Funds backed by the Solana cryptocurrency saw the second-biggest increase and claimed over $16 million in gains, a 900% increase compared to the previous week. (Photo: Bloomberg)

2 min read Last Updated : Jul 08 2024 | 10:03 PM IST

By Benjamin Taubman

Digital asset investment products had positive inflows for the first time in a month after the prices of cryptocurrencies across the board dropped to their lowest levels in months.

Crypto digital asset products saw inflows totaling $441 million in the week ended July 5, CoinShares International Ltd. data show, a significant rebound from the $39 million in outflows the week prior. The major crypto products that CoinShares tracks were overall in the green last week.

Bitcoin digital funds led the pack with nearly $400 million in inflows, marking a turnaround from a three week period which saw products for the world’s largest cryptocurrency lose over $1.2 billion. The substantial inflows came amid a week where the price of Bitcoin briefly dipped to $54,000, its lowest level since February.

The Bitcoin funds from Fidelity and ProShares had the highest inflows at about $200 million and $100 million, respectively. Despite gains for most other Bitcoin products, Grayscale’s fund was still in the red and lost around $90 million.

Funds backed by the Solana cryptocurrency saw the second-biggest increase and claimed over $16 million in gains, a 900% increase compared to the previous week. The gains comes about two weeks after asset manager VanEck appealed to the US Securities Exchange Commission to obtain approval for a Solana-backed ETF. But the likelihood that the filing goes through is a “long-shot,” according to Bloomberg Intelligence analyst James Seyffart.

Inflows for Ether funds were about $10 million, and Ether Strategy ETF was the biggest winner with about $6 million in inflows. But Ether-backed products still have overall outflows for the year totaling about $15 million now.

Ether gained about 4% to about $3,000 on Monday morning while Bitcoin rose around 3% to $56,500.

First Published: Jul 08 2024 | 10:03 PM IST

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