European Crypto ETP Investments Experience Sharp Increase in June and July

Crypto News– During June and July, European exchange-traded products (ETPs) associated with cryptocurrencies observed net inflows, marking a reversal from almost three months of global ETP outflows.

European Crypto ETP Investments Experience Sharp Increase in June and July

European ETPs registered net inflows of €150 million ($162 million) in June, achieving their strongest month since March 2022. The net inflows for July decreased to €60 million ($64.92 million). These two consecutive months of positive net flows followed €100 million ($108 million) in outflows during May, as per Morningstar’s data.

CoinShares data unveiled an almost three-month period of net outflows from ETPs before BlackRock revealed its application for a spot bitcoin ETF in mid-June. The data indicated net outflows of $400 million over the nine consecutive weeks leading up to June 15 when the asset manager submitted its application. Perhaps influenced by the BlackRock filing, both June and July witnessed an increase in flows into crypto ETPs on a global scale. According to CoinShares data, a total net inflow of €560 million ($610 million) was recorded globally for June and July. Nevertheless, a CoinShares report from Monday indicated a downturn in the third week of August, signaling investor disappointment and fatigue due to the delay in the U.S. Securities and Exchange Commission’s decision regarding a spot bitcoin ETF.

In the week leading up to August 21, digital asset investment products experienced outflows amounting to $55 million, the report added. CoinShares analysts noted, “We interpret this as a reaction to recent media reports suggesting that the U.S. Securities and Exchange Commission is not on the brink of permitting a U.S. spot-based ETF.