Bitcoin ETF

Bitcoin

Time

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Digital asset investment products see inflows for the first time in five weeks of $130M.</li>
 <li>Bitcoin trades above $62k, up by over 2% in 24 hours on CoinMarketCap.</li>
</ul>
<p>This year, the factors influencing Bitcoin’s price have shifted away from the interest rate narrative when the Bitcoin ETFs were approved in the US at the beginning of 2024.</p>
<p>The approval of Bitcoin ETFs led to more than $13 billion in inflows during Q1 2024.</p>
<p>This surge decoupled BTC’s prices from the recent historical relationship with interest rate expectations, and BTC reached around $74,000.</p>
<p>Following the Bitcoin ETF approval, the BTC prices realigned with market expectations on interest rates.</p>
<figure style="width: 100%" class="wp-caption alignnone"><a href="https://blog.coinshares.com/bitcoins-price-dynamics-federal-reserve-policies-and-economic-shifts-in-focus-1c5bf612de67" rel="noopener noreferrer nofollow" target="_blank"><img fetchpriority="high" decoding="async" src="https://miro.medium.com/v2/resize:fit:875/0*cRszQhAi4U2sZYQI" alt="Interest rate expectations vs BTC price" width="875" height="492" title="Crypto ETPs See Inflows For The First Time In 5 Weeks Of $130M 2"></a>
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  Interest rate expectations vs BTC price
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</figure>
<p>CoinShares <a href="https://blog.coinshares.com/bitcoins-price-dynamics-federal-reserve-policies-and-economic-shifts-in-focus-1c5bf612de67" rel="noopener noreferrer nofollow" target="_blank">noted</a> recently that The Federal Reserve is confronted with a dilemma as it needs to control persistent inflation while supporting a weakening US economy. This could turn out advantageous for Bitcoin, they note.</p>
<h2 id="btc-is-trading-above-62k">BTC is trading above $62k</h2>
<p>After a few days of a price drop for BTC around $61k, now BTC is trading above the important level of $62k. The coin is up by over 2% in the past 24 hours on <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer nofollow" target="_blank">CoinMarketCap</a>.</p>
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<p>Earlier today, BTC hit the $63k mark for the first time since May 10.</p>
<p>Crypto investment products saw inflows for the first time in five weeks of $130 million, according to data from CoinShares.</p>
<p>They note that the ETP volumes continue to subside with $8 billion for the week, compared to the $17 billion average in April.</p>
<p>Such volumes highlight that ETP investors are participating less in the crypto ecosystem now, representing 22% of total volumes on global trusted exchanges. Last month the number was 31% of total volumes.</p>
<p><a href="https://blog.coinshares.com/volume-182-digital-asset-fund-flows-weekly-report-b4608e30d123" rel="noopener noreferrer nofollow" target="_blank"><img decoding="async" class="alignnone" src="https://miro.medium.com/v2/resize:fit:875/1*1CKQlOY1Lxkrt3Bu_6XHAQ.png" alt="" width="875" height="880" title="Crypto ETPs See Inflows For The First Time In 5 Weeks Of $130M 3"></a></p>
<h2 id="regional-crypto-investment-products-inflows">Regional crypto investment products inflows</h2>
<p>The US saw the majority of inflows, with a total of $135 million. Grayscale saw the lowest weekly outflows since January, a total of $171 million. Switzerland saw inflows of $14 million.</p>
<p>Regarding the Asian market, Hong Kong saw $19 million in inflows after a week of record numbers for inflows. This suggests that the majority of the first week post-Bitcoin ETF launches was seed capital.</p>
<p>Canada and Germany saw outflows totaling $20 million and $15 million, respectively. Their year-to-date outflows total a combined $660 million.</p>
<p><a href="https://etp.coinshares.com/knowledge/market-activity/fund-flows-07-05-24" rel="noopener noreferrer nofollow" target="_blank">CoinShares</a> also notes that the low interaction by the US regulators with ETF issuers for a spot <a href="https://crypto.ro/en/news/us-sec-expected-to-deny-ethereum-etfs-in-may-insiders-claim/" rel="noopener noreferrer nofollow">Ethereum ETF</a> triggered increased speculation that the ETF approval is not necessarily on its way. This was mirrored by outflows from last week totaling $14 million.</p>
<p>Along with interest in Bitcoin ETFs, the price of BTC is also expected to be driven by other important factors such as the launch of <a href="https://crypto.ro/en/education/bitcoin-runes-protocol/" rel="noopener noreferrer nofollow">Runes Protocol</a> on Bitcoin that took place on April 20, the halving day, and <a href="https://crypto.ro/en/news/whats-next-for-bitcoin-miners-post-halving-optimism-still-alive/" rel="noopener noreferrer nofollow">Bitcoin miners</a>‘ <a href="https://crypto.ro/en/news/bitcoin-miners-interest-shifts-to-ai-computing-to-boost-revenue/" rel="noopener noreferrer nofollow">shifting interest</a> towards AI computing, following a drop in revenue.</p>
<p>The Bitcoin halving event catalyzed a shift towards more efficient operations and capital deployment, and it represents a great opportunity for scaled, well-capitalized miners.</p>

Crypto ETPs See Inflows For The First Time In 5 Weeks Of $130M

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