Crypto Funds Rake in $2B as Rate Cut Hopes Fuel Positive Streak

• Crypto funds have extended their net inflows streak. 
• According to CoinShares, U.S. economic data likely drove the recent haul.
• Bitcoin funds saw the most traction.

Crypto funds are experiencing a significantly positive run. After four consecutive weeks of inflows in May 2024, these investment funds have extended this streak for a fifth week in June 2024, bringing assets under management to heights not seen since March 2024.

Unusual Flows

Crypto investment products raked in $2 billion in inflows in the past week, according to CoinShares’ most recent digital asset funds flow report published on Monday, June 10. For context, these funds took the entire month of May 2024 to amass the same net inflows .

CoinShares argued that the recent “unusually” high inflows highlighted shifting market sentiment in the face of U.S. economic data. 

"Unusually, inflows were seen across almost all providers, with a continued slowdown in outflows from incumbents. We believe this turn around in sentiment is a direct response to weaker than expected macro data in the US, bringing forward monetary policy rate cut expectations," the firm wrote. Table of last week’s crypto fund flows by asset. Source: CoinShares

With last week’s flows, the total asset under management on crypto funds has again breached $100 billion for the first time since March 2024.

As is typically the case, Bitcoin funds remained the primary focus of investors, raking in $1.97 billion as U.S.-approved spot Bitcoin ETFs extended their inflow streak for over 19 days. On June 4 alone, these ETFs raked in nearly $900 million , their third-largest inflow day on record.

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Meanwhile, Ethereum funds also experienced a good run. They recorded their highest week of inflows since March 2024, $69 million. CoinShares attributed the haul to investors anticipating the beginning of trading of recently approved spot Ethereum ETFs in the U.S.

Beyond Bitcoin and Ethereum, altcoins like Fantom and XRP also saw respectable interest, with $1.4 million and $1.2 million, respectively.

On the Flipside 

• Save for mild price bumps early last week; crypto asset prices have traded within a tight range despite sustained inflows to ETFs.
• The mixed U.S. employment data for May 2024 will likely give investors anticipating near-interest rate cuts a pause for thought.

Why This Matters 

Fund flows offer insight into crypto market sentiment. Last week’s fund flows suggest that investors are feeling significantly bullish.

Read this for more on the recent crypto fund flows:
Crypto Funds YTD Flows Hit Another Milestone After $2B May Haul

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