Investing

Digital Asset Funds See $125M in Weekly Inflows Despite SEC's ETF Stance

Tim Fries

Published: July 3, 2023 10:36 pm

Last week, the Securities and Exchange Commission (SEC) said spot Bitcoin exchange-traded fund (ETF) applications filed by BlackRock and other Wall Street giants were “inadequate.” However, this statement did not significantly affect investor sentiment, as digital asset investment products recorded $125 million in inflows last week.

Crypto Investment Products Saw $334M in Net Inflows In the Last 2 Weeks

Digital asset investment funds registered another week of strong inflows, raking in $125 million in the week that ended on Friday, June 30. With the latest surge, these investment products saw $334 million in inflows over the past two weeks, accounting for nearly 1% of total assets under management (AUM), according to CoinShares.

Bitcoin attracted the majority of inflows at $123 million. Investment funds related to the world’s leading cryptocurrency are now back to a net inflow since the start of the year after being in a net outflow position of $171 million two weeks ago.

Meanwhile, short-bitcoin investment products witnessed total outflows of $0.9 million last week, marking its 10th consecutive week of negative flows. Despite this bearish run, short-bitcoin funds are still the second-best-performing asset in year-to-date fund flows at $60 million.

Regarding altcoins, Ethereum-related funds witnessed inflows totaling $2.7 million, followed by Cardano, Polygon, and XRP. Multi-asset investment products and Solana experienced minor outflows of $1.8 million and $0.8 million, respectively.

SEC Argues Spot Bitcoin ETF Applications are ‘Inadequate’

The second week of inflows in digital asset funds comes despite the SEC’s statement that recent spot Bitcoin ETF applications by BlackRock, Invesco, and Fidelity Investments were inadequate.

The securities regulator said the applications were not clear and comprehensive enough, the Wall Street Journal reported on Friday. Stock exchanges Nasdaq and Cboe Global Markets updated and refiled their applications on the same day to address the commission’s feedback.

Last month, prices of Bitcoin and other cryptocurrencies rallied significantly after BlackRock announced it filed to launch a spot Bitcoin ETF. The move was quickly followed by other traditional finance (TradFi) institutions, significantly improving crypto investor sentiment and lifting BTC’s price above the $30,000 mark for the second time this year.

This article originally appeared on The Tokenist