The Crypto Market Faces Major Turbulence: $2 Billion Flows into Bitcoin, Ethereum Purchase Volume Hits Three-Month High, Whales Invest Heavily in Meme Coins

Bitcoin leads investment activity, attracting over $1.97 billion in inflows, while Ethereum experiences its best performance since March, with nearly $70 million in inflows.

Some traders expect the purchase activity related to Ethereum products to continue, anticipating the asset to reach a price level of $10,000 in 2024.

In a report released on Monday (June 10), asset management company CoinShares stated that nearly $2 billion flowed into crypto investment products last week, pushing the total inflows over the past five consecutive weeks to more than $4.3 billion.

The trading volume of exchange-traded products (ETP) increased to $12.8 billion last week, a 55% increase from the previous week. Bitcoin led investment activity, with over $1.97 billion inflowing within a week, while Ethereum (ETH) saw its highest weekly inflows since March, nearly reaching $70 million.

Since mid-May, the purchase activity of U.S. spot Bitcoin exchange-traded funds (ETFs) has increased, following a poor performance in April when all products saw zero net inflows, including major products like BlackRock’s IBIT, which even experienced outflows. However, inflows have picked up since then—IBIT became the largest Bitcoin ETF last week, accumulating over $20 billion in assets since its launch in January.

CoinShares analyst James Butterfill stated:

“Unusually, almost all providers saw inflows, while outflows from traditional providers continued to slow down. Positive price action has pushed the total assets under management (AuM) above $100 billion for the first time since March this year.”

Butterfill added that the purchases of Ethereum might be a reaction to the U.S. Securities and Exchange Commission's (SEC) unexpected decision to allow a spot Ethereum ETF.

Meanwhile, some traders anticipate that inflows into ETH products will continue in the coming months, expecting a surge before the end of the year.

Ed Hindi, Chief Investment Officer at Tyr Capital, told CoinDesk in an email on Monday (June 10):

“There could be $5 to $10 billion of new capital flowing into Ethereum products in the short to medium term. This could push ETH and its ecosystem to new all-time highs before the end of the year.”

Hindi added: “The $10,000 price target for 2024 is now a reasonable goal, especially when considering other supportive factors, such as ETH’s current deflationary status.”

In May, the SEC approved key regulatory filings related to ETH ETFs, marking a historic milestone for the second-largest cryptocurrency.

The regulatory body approved ETF filings from eight companies, including VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy, and BlackRock, allowing them to list on Nasdaq, NYSE Arca, and Cboe BZX exchanges.