Crypto ETP inflows up post BlackRock’s Bitcoin filing

Following BlackRock’s application to launch a bitcoin fund in the US, European exchange-traded products (ETPs) related to cryptocurrencies have seen a surge in capital influx.

ETPs in Europe, bearing names associated with cryptocurrencies, witnessed a noteworthy increase in net inflows, totalling €150 million in June. This marked their most prosperous month since March 2022, as indicated by data from Morningstar. 

The surge came after outflows amounting to €100 million in May, followed by an additional €60 million in inflows in July. 

The global trend was no different. June and July saw combined inflows amounting to $610 million (equivalent to €560 million), recorded by CoinShares.

The catalyst for this trend was BlackRock filing an application with a US regulatory authority in June to introduce a spot bitcoin ETF. 

Globally, crypto ETPs underwent nine consecutive weeks of net outflows before the announcement of BlackRock’s application, resulting in a total of $400 million in outflows, according to CoinShares. 

Unlike ETFs that follow the price of bitcoin futures contracts, a spot ETF would directly mirror the fluctuations in the price of bitcoin. Several of these ETFs, tied to futures contracts, have secured regulatory approval in the US.

BlackRock’s application prompted a series of similar applications from other firms like Fidelity, Invesco and WisdomTree. 

© 2023 funds europe

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