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Digital Assets Attracting Investments In First Half Of June

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There have been so many developments in the digital asset market around the ongoing bull run. It made the crypto markets more interesting in June, as the middle of June awaits the latest update on CPI inflation and the interest rate from the Fed Reserve.

All these economic trends and market forces have attracted a good amount of deposits and funds in the crypto market. This article will highlight all the major highlights in the market that have been occurred in the market in the first week of June.

Bitcoin Continues to be the Primary Focus of Crypto Market

Last week, Bitcoin witnessed an inflow of $1.97 Billion despite the range bound price movement throughout the week. Thus, short Bitcoin saw the maximum outflows in continuity for 3 weeks, resulting in a total outflow of $5.3 Million.

This week, Bitcoin experienced a negative start, with a decline of 0.47% at the time of writing, trading at $69,310. However, it is not a significant decline and Bitcoin will attract price gains as it comfortably stays above $69,000.

Ethereum Attracting Users

Since March 2024, Ethereum has attracted the highest inflows, totaling US$69 Million, The Ethereum inflows are driven by the sudden approval of spot ETH ETF. It is further expected to rise with the launch of ETH ETF in the US stock exchange. The current statement by Gary Gensler, SEC chair further reduced the expected delay in the launch.

Gary Gensler recently stated that there is no delay from the SEC in the launch and approval of the spot ETH ETF. The ongoing delay in the launch is because of issuers, who are processing their instruments and will soon complete them and be ready for trading.

At the start of this week, Ethereum had experienced a similar trend to that of Bitcoin, as it witnessed a decline of 1.02%, trading at $3,670. The declining trend will not be sustained as the ETH ETF approval will continue the bullish expectations.

Total Inflow in Digital Assets

Digital assets investment class products observed an inflow of US$ 2 Billion in the same period, with a continued inflow trend of May resulting in a total inflow of $4.3 Billion. Trading volume for exchange traded products (ETPs) increased to $12.8 Billion. It has increased by 55% from the previous week.

Inflows were observed in all the instruments backed by various issuers, indicating that the factors supporting the growth are asset class and industry specific and not issuer specific.

Deep diving into factors, the factors that are primarily supporting the inflow are related to macroeconomic data in the US, including the upcoming Fed release, expected monetary policy rate cut expectations.

These inflows have led to an increase in total assets under management (AUM) to above $100 Million for the first time in the last three months.

BTC ETF has also reported inflows of over $800 Million in a single day, the second highest inflow since the launch of instruments. The highest was recorded in the first half of March. Amid this rise in inflows, BTC ETFs have marked some of the greatest achievements in their history, like the 15-day streak of inflows and others discussed in some of the other articles. 


The analysis given above is for informational and educational purposes only. You should not take it as financial, investment, or other advice. Investing in or trading crypto assets is risky. Please consider your circumstances and risk profile before making any investment decisions.

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