Crypto ETPs See $1.24 Billion Inflows Despite Price Drops

Coin WorldMonday, Jun 23, 2025 5:49 am ET
2min read

Cryptocurrency investment products continued to attract strong investor interest last week despite major crypto assets like Bitcoin and Ether posting notable price drops. Global crypto exchange-traded products (ETPs) recorded $1.24 billion of inflows for the trading week ending Friday, according to CoinShares. With the latest inflows, crypto ETPs continued breaking year-to-date (YTD) inflow records, setting a new historic high at $15.1 billion. Total assets under management (AUM) in crypto ETPs also edged up to $176.3 billion from last week’s $175.9 billion.

Bitcoin leads ETP inflows for a second consecutive week. Bitcoin (BTC) ETPs saw a second consecutive week of inflows, totalling $1.1 billion, despite BTC prices dropping from around $108,800 on June 16 to $103,000 by the end of the week. The resisting growth in the Bitcoin ETP dynamics despite the spot price decline indicated that investors were buying on weakness. This sentiment was further supported by minor outflows from short-Bitcoin products, which totalled $1.4 million.

Crypto ETP flows by asset as of Friday (in millions of US dollars). The Crypto Fear & Greed index suggested that the market sentiment dropped to “Fear” on Sunday after maintaining “Greed” for the past month. On Monday, the index slightly recovered to “Neutral.” Though crypto ETP activity remained strong last week, the ETP sentiment cooled in the latter half of the week, likely due to the US Juneteenth holiday and emerging reports of US involvement in the Iran conflict. Both crypto ETPs and spot crypto prices held strong in the previous trading week, with ETPs posting $1.9 billion of inflows despite the escalation of the Israel-Iran conflict.

Crypto funds experienced a significant inflow of $1.24 billion last week, despite the market panic triggered by recent events. This influx of capital into crypto exchange-traded products (ETPs) highlights a notable trend of investor confidence amidst broader market turbulence. The substantial inflow into crypto funds suggests that investors are viewing the current market panic as a buying opportunity rather than a reason to exit the market. This behavior is indicative of a long-term investment strategy, where investors are willing to weather short-term volatility in exchange for potential long-term gains. The resilience of crypto funds in the face of market panic underscores the growing acceptance and maturity of the crypto asset class.

The market panic, likely stemming from geopolitical tensions or regulatory concerns, did not deter investors from allocating funds to crypto ETPs. This resilience can be attributed to the diversification benefits that crypto assets offer, as well as the potential for high returns. Investors are increasingly recognizing the value of crypto assets as a hedge against traditional market risks, and the recent inflows reflect this sentiment. The tapering off of trading activity in the latter half of the week suggests that investors are adopting a wait-and-see approach, monitoring the market for further developments before making additional investments. This cautious behavior is a prudent strategy in volatile markets, as it allows investors to assess the impact of market events on their portfolios before committing additional capital.

The $1.24 billion inflow into crypto funds is a testament to the growing institutional interest in crypto assets. Institutional investors, with their deep pockets and long-term investment horizons, are increasingly allocating capital to crypto funds as part of their diversified portfolios. This trend is likely to continue as more institutional investors recognize the potential of crypto assets to generate alpha and hedge against traditional market risks. In conclusion, the $1.24 billion inflow into crypto funds last week, despite the market panic, highlights the growing confidence of investors in the crypto asset class. The resilience of crypto funds in the face of market turbulence underscores the potential of crypto assets as a long-term investment, offering diversification benefits and the potential for high returns. As the market continues to evolve, investors are likely to remain cautious, adopting a wait-and-see approach as they navigate the uncertain market conditions.