European Cryptocurrency ETPs Experience Surging Inflows, Reaching Highest Level Since 2022

Key Points:

• European cryptocurrency-related exchange-traded products (ETPs) witness a substantial net inflow of 150 million euros in June, the highest level since March 2022, driven by increased market interest and the BlackRock Bitcoin ETF application.
• The momentum extends globally, with cryptocurrency ETPs worldwide experiencing inflows of $610 million in June and July. BlackRock’s application reverses previous outflows, indicating a growing acceptance of cryptocurrencies as a legitimate asset class within traditional financial markets.

A notable surge in European cryptocurrency-related exchange-traded product (ETP) inflows has captured the attention of the financial world, signaling a renewed momentum in the sector. 

Data from Morningstar reveals that June witnessed a remarkable net inflow of 150 million euros into cryptocurrency-related ETPs in Europe, marking the highest level since March 2022. This upward trajectory aligns with recent developments in the cryptocurrency investment landscape. The submission of a Bitcoin exchange-traded fund (ETF) application by BlackRock in the United States has been identified as a pivotal catalyst for this surge. 

The prospect of a regulated Bitcoin ETF has rekindled interest and prompted increased investor participation in the crypto market, as evidenced by the flow of funds into European cryptocurrency-related ETPs.

This trend is not limited to Europe alone. Globally, CoinShares reports that cryptocurrency ETPs experienced substantial inflows of $610 million (approximately €560 million) during both June and July. This comes on the heels of a nine-week period characterized by net outflows from cryptocurrency ETPs worldwide, totaling $400 million. However, the announcement of BlackRock’s Bitcoin ETF application reversed this trend, as inflows surged to offset the prior outflows.

The confluence of a well-established financial institution like BlackRock seeking regulatory approval for a Bitcoin ETF, coupled with heightened market interest, has spurred a renewed investor enthusiasm for crypto-related investment products. 

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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