Investors Buy Bitcoin (BTC) ETPs Despite Market Volatility

Cryptocurrency investment products continue to attract investor capital despite ongoing market volatility and a notable drop in the price of Bitcoin (BTC) and Ethereum (ETH).

Global crypto exchange-traded products (ETPs) recorded $1.24 billion of inflows for the trading week ended June 20. Crypto ETPs continue to break inflow records, setting a new historic high at $15.1 billion through the first six months of a year, according to market data.

Total assets under management (AUM) in crypto ETPs now stands at $176.3 billion. Despite its price dropping below $100,000 in recent days after the U.S. attacked Iranian nuclear sites, Bitcoin continues to lead ETP inflows.

Bitcoin exchange-traded products saw weekly inflows totaling $1.1 billion.

Buying on Weakness

Analysts say investors appear eager to buy more Bitcoin on any signs of weakness in the price of the largest cryptocurrency by market capitalization. At the same time, Ethereum ETPs recorded their ninth consecutive week of inflows, netting $124 million over the past week. Ethereum exchange-traded products are now on their longest run of inflows since mid-2021.

BlackRock (BLK), the largest Bitcoin asset manager globally, continues to see major gains, accumulating more than 3% of the total Bitcoin supply through June 20. Other Bitcoin exchange-traded fund (ETF) issuers, such as ProShares and Bitwise, saw inflows of $77 million and $33 million, respectively in the last week. Bitcoin is currently trading at $101,521.

Is BTC a Buy?

Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Bitcoin, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 15.61% in the last 12 weeks.