Crypto ETPs saw $286M in net inflows last week, driven by Ether, while Bitcoin products recorded $8M in outflows over the same period.
Crypto ETPs Surges: $286M Inflows as Ether Dominates
Last week, cryptocurrency investment products continued their multi-week inflow trend despite intense selling pressure brought on by Bitcoin’s decline to $103,000. According to CoinShares’ June 2 report, global cryptocurrency exchange-traded products (ETPs) saw $286 million in inflows in the week ending May 30, bringing the total inflows to $10.9 billion over the previous seven weeks.
Despite the inflows, market volatility brought on by concern about US tariffs caused total assets under management (AUM) to drop from the all-time high of $187 billion to $177 billion by the weekend, according to James Butterfill.
According to various data, the fresh inflows occurred as Bitcoin BTC $104,423 fell around 6% from $110,000 last Monday to an intraweek low of $103,400 by May 30.
Ether ETH ($2,486) drives with $321 million in inflows, ETPs topped last week’s crypto ETP buying, which was the biggest run since late December 2024 and showed a notable recovery in sentiment. After a significant flow reversal following a New York Court ruling declaring US tariffs unconstitutional, Bitcoin ETPs suffered outflows of $8 million, according to Butterfill. With $28 million in outflows, XRP’s $2.14 investment products saw the most significant outflows last week. Butterfill said the withdrawals signaled XRP’s second consecutive week of losses.
BTC ETF withdrawals, iShares ETFs saw the most significant inflows.
Despite significant withdrawals from Bitcoin ETFs at the end of the week, BlackRock’s iShares ETFs led issuer inflows last week.
CoinShares reports that inflows into iShares ETFs were $790 million, with year-to-date inflows reaching $12.4 billion. At the same time, iShares’ AUM dropped from $74.8 billion the previous week to $72.9 billion last week, suggesting that Bitcoin ETFs were losing ground. With $282 million in losses last week, the bitcoin investment products sold by ARK Invest and 21Shares suffered the most losses among issuers, bringing the total outflows for the year to $22 million.
Following six weeks of robust inflows into BTC products, the flow reversal in Bitcoin ETPs occurred last week. The net losses were ascribed to various causes that contributed to the general downturn of the cryptocurrency markets. Cryptocurrency prices have traditionally performed inconsistently in June, indicating possible seasonal weakness, according to Cointelegraph Markets. According to earlier reports, some investors have profited from Bitcoin’s recent price declines, with long-term investors covertly profiting on the cryptocurrency’s surge past $110,000.
Strong ETH futures markets and increasing network characteristics have led to an increase in ether ETPs. A protracted stretch of bearishness that compelled some trading firms to abandon ETH support in early May and treat it like a memecoin was followed by Ether’s recent surge. However, several ETH enthusiasts conjectured that the asset’s May dip represented its bottom, suggesting a possible downward trend reversal
Why These Inflows Matter
There is more to the rapidly increasing volume of Bitcoin ETP inflows than just a figure. It offers vital information regarding the state, maturity, and changing market patterns.
Market Sentiment Indicator: Crypto ETPs inflows are a real-time market sentiment indicator that measures investor confidence. Consistent inflows indicate optimism and a greater willingness to take risks.
Institutional Legitimacy: Accredited and institutional investors are the main users of ETPs. Increased involvement suggests increased use among hedge funds, asset managers, and family offices.
Price Influence: Strong inflows typically correspond with bullish price action, particularly during low-volume times, even though cryptocurrency ETPs don’t always directly impact spot prices.
Trends in Diversification: Moving away from Bitcoin-only products and towards more varied altcoin exchange-traded funds (ETPs) demonstrates a changing approach to investing that is developing alongside the sector.
A noteworthy milestone demonstrating that institutional trust and traction in digital assets continue to increase even in difficult times is the recent rush of $286 million into crypto ETPs, which is more than a figure. Ethereum’s significant inflows signal a new stage in investor attention because of its practical applications, potential future ETFs, and part of the evolving Web3 environment. Even while Bitcoin is still the market leader, it is clear that its focus is expanding as altcoins like Solana and Chainlink are becoming more popular. Crypto ETPs are establishing themselves as both financial tools and markers of the direction of the digital economy as 2025 draws to a close.
