Bitcoin ETF Flows Return as Big Banks, Pension Funds Report Allocations

(Kitco News) – A five-week streak of outflows from digital asset investment products came to an end on Friday as globally listed crypto funds recorded inflows of $130 million worth $130 million last week, with Bitcoin (Bitcoin) representing the majority of activity.

“However, ETP volumes continue to decline, with $8 billion for the week compared to the average of $17 billion in April,” he said James Butterfill, head of research at CoinShares. “These volumes highlight that ETP investors are participating less in the crypto ecosystem at the moment, representing 22% of total volume on global trusted exchanges compared to 31% last month.”

US-listed BTC exchange-traded funds (ETFs) accounted for the majority of inflows, with $135 million flowing into these products, while Grayscale (GBTC) recorded its lowest weekly outflows since January after $171 million was removed from the bottom.

Switzerland saw inflows of $14 million, and Hong Kong saw just $19 million in inflows after posting record increases the week before, “suggesting that the majority of the first week after the launch of the Bitcoin ETF was seed capital,” he said. Butterfill. “Canada and Germany continued to record outflows totaling $20 million and $15 million, respectively, with their year-to-date outflows now totaling a combined total of $660 million.”

Bitcoin products recorded net inflows of $144 million, recovering from what had been a weak month up to that point, while short Bitcoin ETPs recorded outflows of $5.1 million, bringing the last eight weeks of outflows to US$18 million.

Solana products saw a $5.6 million increase in assets under management, Polkadot saw inflows of $1.2 million, and XRP gained $600,000.

Although ETF flows have stabilized in recent weeks, many analysts believe things could soon start to look up again, as frequent reports show that large brokerages, banks and retirement funds are starting to make allocations to Bitcoin through Spot ETFs.

Tuesday brought reports that the Wisconsin State Board of Investment has $142 million in exposure to Bitcoin ETFs, suggesting that inflows into spot BTC ETFs are just beginning.

The emergence of news about banks and other large funds investing in Bitcoin has led to an increase in sentiment despite continued sideways price action, with the level of greed rising since Monday after the Wisconsin news began circulating, despite Tuesday’s Producer Price Index reading. showing that inflation remains stubbornly high.

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