A monthly column on the crypto markets and ETF/ETP flows, brought to you by CoinDesk Indices, Trackinsight and ETF Express.
Joshua de Vos, Research Lead, CoinDesk, writes that June saw a deceleration in digital asset investment activity, with USD6.03 billion in net inflows, down 17 per cent from May’s USD7.33 billion, according to TrackInsight data.
- While the total remained robust, the moderation in pace reflected a broader slowdown in market momentum, marking the first deceleration since March.
Index performance
- The CoinDesk 5 Index (CD5), which tracks the five largest digital assets by market cap and liquidity, rose 1.55 per cent in June to close at 1,753.4.
- The broader CoinDesk 20 Index (CD20) declined 0.35 per cent to 3,050.7, underlining a modest rotation back into mega-cap tokens, particularly bitcoin and Ether.
- This divergence follows a strong May, when CD20 climbed 12.3 per cent.
Asset flows
- Flows remained concentrated in major assets. Bitcoin-linked products attracted USD4.17 billion, a 33.5 per cent drop from May’s USD6.27 billion, though they still accounted for nearly 70 per cent of total allocations.
- Ether-based products drew USD1.50 billion, up 82 per cent from May’s USD822 million, reflecting a continuation of last month’s trend reversal and rising institutional positioning in ETH.
- Solana and XRP products recorded inflows of USD55 million and USD195.8 million, respectively, rebounding from May’s net outflows of USD17.5 million and USD29.7 million.
Flows by geography
- US dominance persisted, with American-listed products drawing USD5.77 billion in flows, nearly unchanged from May’s USD6.86 billion, and accounting for 96 per cent of global inflows.
- Canada recorded USD87.6 million, down from USD305 million in May.
- European flows declined to USD256 million from USD469 million, led by softer demand in Switzerland and Germany.
- APAC saw notable weakness, reversing from flat flows to USD91 million in net outflows, led by Hong Kong and Sweden.
Flows by currency
- USD-denominated products again led volumes, comprising 79.9 per cent of total activity. However, USD product flows fell 10 per cent month-on-month to USD5.95 billion.
- Minor inflows were seen in CAD and AUD-denominated products
- SEK and EUR funds continued to register redemptions.
- CHF and NZD-linked products remained flat.
US ETF movers
- BlackRock’s iShares Bitcoin Trust ETF extended its lead, bringing in USD3.29 billion, about half the USD6.6 billion recorded in May, yet still accounting for 62 per cent of flows across the top ten products.
- Fidelity’s Wise Origin Bitcoin Fund took in USD353 million, down 15 per cent.
- iShares Ethereum Trust ETF saw inflows nearly double to USD973 million.
- Volatility Shares 2x Ether ETF maintained momentum, adding USD235 million compared with USD107 million in May.
Policy watch: GDLC/CD5
- On July 1, the SEC initially approved Grayscale’s request to convert its Digital Large Cap Fund (GDLC), which holds bitcoin, Ether, XRP, Solana, and Cardano, into an ETF via delegated authority.
- The decision was placed under review the very next day following an internal request by the SEC’s commissioners, pausing the approval process.
- GDLC, which the CoinDesk 5 Index underlies, would be the first multi-asset product tied to the index to receive U.S. ETF status.
- Should the review be resolved favourably, it may signal broader acceptance for diversified crypto U.S. ETFs beyond single-asset exposures.
Outlook
- Digital asset ETPs enter the second half of the year in a more cautious environment, following three consecutive months of strong momentum.
- However, the growing institutional footprint in Ether, renewed activity in altcoins, and the prospect of multi-asset ETF approvals suggest that structural adoption remains intact.
- While tactical flows may continue to moderate, the underlying trend points toward steady expansion of institutional participation.
Data Sources:
TrackInsight (All ETF and ETP Data): https://www.trackinsight.com/services/data-services
CoinDesk (XBX, CD20, CD80, Centralised Exchange Data): https://indices.coindesk.com/indices; https://www.coindesk.com/price
Disclaimer: TrackInsight considers flows from an ETF’s perspective, treating the fund’s first AUM upon listing as its initial inflow, which may differ from other sources that account for pre-listing activity or conversions.
