Cryptocurrency exchange-traded products (ETPs) experienced a slight resurgence last week, registering minor inflows after a significant outflow of over $1 billion in the preceding two weeks. According to a CoinShares report released on April 22nd, crypto investment products attracted $6 million in the week spanning April 14th to 18th. This modest inflow reflects a nuanced investor sentiment navigating a volatile market.
However, the positive momentum proved fragile. James Butterfill, Head of Research at CoinShares, noted that “While the week began with minor inflows, stronger-than-expected US retail sales figures mid-week likely triggered outflows of $146 million.” This suggests that macroeconomic indicators continue to exert considerable influence over investor behavior within the crypto space. Despite the mid-week dip, the total assets under management (AUM) in crypto ETPs saw a marginal increase of 1.4%, climbing from $129 billion on April 11th to $131 billion by April 18th.
BlackRock Leads Inflows While US Bitcoin ETFs Remain in the Red
A closer look at individual issuers reveals a divergence in performance. BlackRock’s iShares exchange-traded funds attracted the largest inflows last week, amounting to a substantial $182 million. In contrast, major players like Fidelity witnessed significant outflows of $123 million from their crypto ETPs. Bitwise and European issuer 21Shares were among the few others that reported inflows, totaling $24 million and $37 million respectively.
Despite BlackRock’s positive weekly performance, the broader trend for US Bitcoin ETF issuers in April remains negative. All US crypto ETP issuers are currently experiencing month-to-date losses. Notably, European-based 21Shares stands out as the only issuer maintaining inflows in April, with $28 million. Year-to-date figures paint a slightly different picture, with BlackRock’s iShares ETFs boasting over $3 billion in inflows. However, the majority of issuers remain in negative territory for the year, with the exception of Proshares and ARK Investments.
Also Read: Litecoin (LTC) Set for ETF Approval as Grayscale, CoinShares, and Canary Lead the Charge
XRP Attracts Significant Capital While Ether Sees Outflows
Analyzing flows by individual assets reveals interesting trends. Ether (ETH) experienced the largest ETP outflows last week, totaling $26.7 million. In stark contrast, XRP demonstrated significant investor interest, attracting substantial inflows of $37.7 million, making it the top-performing crypto ETP in terms of inflows for the week.
Bitcoin (BTC) saw minor outflows of $6 million, extending its April outflows to $894 million. Nevertheless, Bitcoin still holds the largest year-to-date ETP inflows at $541 million, followed by Ether and XRP with $215 million and $214 million respectively. The recent data underscores the dynamic nature of the crypto market, with investor preferences shifting across different assets and influenced by macroeconomic factors.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
