Crypto Funds Attract $2.7B in 11th Straight Week of Inflows Amid Geopolitical Jitters

Digital asset investment funds pulled in $2.7 billion last week, capping an 11-week streak of inflows that now totals $16.9 billion.

Key Takeaways:

• Digital asset funds saw $2.7 billion in inflows last week, extending an 11-week streak.
• The US led the surge with $2.65 billion in inflows, while Bitcoin captured 83% of total allocations.
• Bitcoin ETFs outpaced gold ETFs, attracting $3 billion compared to $1 billion in gold outflows over five days.

The surge reflects resilient investor appetite, mirroring the strong performance seen in the first half of 2024, which recorded $18.3 billion in inflows by June’s end, according to a Monday report from CoinShares.

The report attributed the continued momentum to intensifying geopolitical tensions and lingering uncertainty over monetary policy direction.

US Sees $2.65 in Crypto Funds Inflows

The bulk of the inflows came from the United States, accounting for $2.65 billion.

Switzerland and Germany recorded modest additions of $23 million and $19.8 million, respectively, while Canada, Hong Kong, and Brazil posted small outflows.

Hong Kong, in particular, has seen steady outflows since recent price spikes, reaching a total of $132 million in June alone.

Bitcoin remained the primary magnet for capital, drawing $2.2 billion last week, a commanding 83% of total inflows, while short-Bitcoin products extended their year-to-date outflows to $12 million, signaling broad optimism for Bitcoin’s prospects.

Ethereum followed with $429 million in inflows, boosting its yearly total to $2.9 billion, whereas Solana has attracted just $91 million so far this year, highlighting a significant gap in investor confidence.

Meanwhile, Bitcoin ETFs are outperforming gold ETFs, with $3 billion in Bitcoin ETF inflows versus $1 billion in gold ETF outflows over five days, highlighting a shift among investors seeking better hedges against traditional U.S. assets.

The rising interest in spot Bitcoin ETFs comes as corporate adoption continues to accelerate despite macro uncertainties.

Anthony Pompliano’s ProCap BTC acquired 3,724 Bitcoin for $386 million as part of plans to go public through an SPAC merger, while Japan’s Metaplanet raised $517.8 million on the first day of its ambitious “555 Million Plan,” which targets 210,000 Bitcoin by 2027.

Bitcoin Rallies Past June Lull as Trump Tax Bill Boosts Sentiment

Bitcoin snapped its typical June weakness with an early Asian rally, tracking equity markets that hit new record highs last week.

The surge was fueled by renewed optimism in Washington, where former President Trump’s $4.5 trillion tax package advanced in the Senate, according to a recent note by QCP Capital.

Market eyes are now fixed on today’s decisive 9 am ET vote, with Republicans racing to seal the deal before the July 4 deadline.

“With BTC spot edging toward $108k, we’re beginning to see a build-up in leveraged longs as perpetual funding rates flip from flat to positive across major exchanges,” QCO wrote on Monday.

“Positioning appears to be chasing the move, as participants lean into directional bets ahead of quarter-end.”

Meanwhile, Ethereum and Solana rallied on hopes that REX Shares’ ETH and SOL staking ETFs could soon win SEC approval, offering institutions new ways to earn crypto yield.

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