Cryptocurrency investment funds continued to defy market turbulence last week, posting a robust $1.24 billion in inflows even as prices for major digital assets like Bitcoin and Ether declined and geopolitical tensions flared. The surge highlights investors’ enduring appetite for crypto exposure, despite an uptick in volatility and market fear.
According to a Monday report by digital asset manager CoinShares, the inflows for the week ending Friday pushed year-to-date (YTD) totals for crypto exchange-traded products (ETPs) to a record-breaking $15.1 billion surpassing previous yearly highs and setting a new benchmark for institutional interest in the sector.
“This marks yet another historic milestone for the industry,” said James Butterfill, head of research at CoinShares, adding that “investors are clearly continuing to allocate capital into the asset class despite recent price weakness.”
Bitcoin Defies Sell-Off to Lead Inflows
Bitcoin-backed ETPs led the pack for the second consecutive week, raking in $1.1 billion in new capital. This inflow came even as Bitcoin’s price dropped significantly from around $108,800 on June 16 to roughly $103,000 by week’s end, according to data from CoinGecko.
Butterfill interpreted the inflows as a classic case of investors “buying on weakness,” a sign of confidence in Bitcoin’s longer-term fundamentals despite short-term market corrections.
The overall assets under management (AUM) in crypto ETPs did decline slightly, slipping from $179 billion the prior week to $176.3 billion, largely reflecting the asset price downturn. Yet the persistent inflows, especially into Bitcoin, point to strategic accumulation by institutional investors.
Ether’s Momentum Continues With Record Run
Meanwhile, Ether-backed products also maintained strong momentum. Ethereum ETPs saw $124 million in net inflows last week, marking the ninth consecutive week of gains. The current run brings total ETH inflows to $2.2 billion, a signal that investor confidence in Ethereum is not waning.
“This marks the longest run of inflows since mid-2021,” Butterfill said. “It reflects continued robust investor sentiment towards the asset, especially as Ethereum continues to evolve its role in decentralised finance and enterprise adoption.”
The optimism in ETH products comes on the heels of headline-making transactions, including SharpLink’s purchase of $463 million worth of Ether, making it the largest public holder of ETH to date.
BlackRock Dominates with $1.3B Weekly Inflows
One of the most notable stories in the crypto ETP space last week came from BlackRock. The financial giant continued its aggressive push into crypto markets, recording $1.3 billion in inflows into its iShares Bitcoin exchange-traded fund (ETF) alone. As of June 20, BlackRock had accumulated more than 3% of the total Bitcoin supply.
The surge in inflows pushed BlackRock’s YTD crypto ETF tally past $15.5 billion, underscoring its growing dominance in institutional crypto asset management.
In contrast, other major players had mixed results. ProShares and Bitwise saw modest inflows of $77 million and $33 million, respectively, while ARK Invest and Fidelity Investments registered outflows totalling $188 million and $62 million.
Sentiment Slips Amid Global Concerns
Despite the positive flow data, investor sentiment took a hit last week. The Crypto Fear & Greed Index, a barometer of market mood, briefly dipped to “Fear” territory on Sunday after spending much of the previous month in “Greed.” By Monday, the index had recovered slightly to “Neutral.”
CoinShares attributed the sentiment dip to a confluence of factors: the Juneteenth holiday in the United States, which typically slows trading activity, and mounting concern over U.S. involvement in the Iran conflict. These geopolitical developments likely added a layer of caution to investor behaviour, even as the underlying demand for crypto products remained firm.
Institutional Faith Amid Uncertainty
The latest figures from CoinShares suggest a growing maturity in the crypto investment landscape. Even as macroeconomic and geopolitical uncertainty weigh on asset prices, institutions continue to allocate capital to digital assets, betting on their long-term value proposition.
While the headlines may paint a picture of a jittery market, the sustained inflows point to a more confident and calculated strategy playing out behind the scenes, one where dips are viewed as buying opportunities and long-term positioning remains the priority.
