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The month of May 2022 will go down in history as one of the most tumultuous periods in the Bitcoin and crypto markets primarily due to the crypto-wide sell-off kick-started by UST depegging and subsequent massive inflation of LUNA. The events caused anxiety and uncertainty surrounding stablecoins globally, leading Bitcoin to hit a local low of $26,700 from values above $40k before UST started to depeg in early May.
May recorded high inflows in Bitcoin instruments
However, according to a report by the team at Arcane Research, May also saw promising recovery in the ETP sector. Net inflows of Bitcoin into Exchange Traded Products amounted to 9,765 BTC in the same month. By the end of May, ETPs total holdings of Bitcoin were nearing 200,000 BTC, with this amount being surpassed with the new month of June.
According to the report, May has seen a strong recovery in the BTC ETPs, with global net inflows amounting to 9,765 BTC. This led global ETP holdings to grow to 197,536 BTC by the end of May. Momentum has further strengthened in early June, pushing the global BTC ETP holdings to a new all-time high of 205,008 BTC two days into June.
Canadian Purpose ETF led BTC inflows into ETPs
In particular, the report highlighted that Canadian BTC ETPs saw massive net inflows of 10,182 Bitcoin in the month of May and the highest in one year. The surge of Bitcoin inflows was almost entirely directed toward the Canadian Purpose ETFs, further demonstrated by the chart below, courtesy of the report.
However, the US Bitcoin inflows were low. Australian Bitcoin ETF off to a slow start with respect to Bitcoin inflows into ETPs in the United States, the report concluded that US-based BTC ETFs saw a very slow month in May with net inflows of 210 BTC. Similarly, the newly launched Australian Bitcoin ETFs kicked off at a slow pace, ‘amassing an AUM of 240 BTC two weeks after launching.’
