Bitcoin ETPs Saw Massive Inflows in May Despite the Crypto Market Selloff Catalyzed by UST’s Depeg Event

Summary:

  • The month of May saw a strong recovery in the inflow of Bitcoin into ETPs, with a total of 9,765 BTC.
  • The flow of BTC into Bitcoin ETPs has also been favorable into June, with the global holdings hitting an all-time high of 205,008 Bitcoin.
  • The Canadian Purpose Bitcoin ETF has led inflows of Bitcoin into ETPs.

The month of May 2022 will go down in history as one of the most tumultuous periods in the Bitcoin and crypto markets primarily due to the crypto-wide sell-off kick-started by UST depegging and subsequent massive inflation of LUNA.

The events caused anxiety and uncertainty surrounding stablecoins globally, leading Bitcoin to hit a local low of $26,700 from values above $40k before UST started to depeg in early May.

Inflows of BTC into Exchange Traded Products Was High in May

However, according to a report by the team at Arcane Research, May also saw ‘promising recovery in the ETP sector.’

Net inflows of Bitcoin into Exchange Traded Products amounted to 9,765 BTC in the same month. By the end of May, ETPs total holdings of Bitcoin were nearing 200,000 BTC, with this amount being surpassed with the new month of June. The report explained the inflows of BTC into Bitcoin ETPs as follows:

May has seen a strong recovery in the BTC ETPs, with global net inflows amounting to 9,765 BTC

This led global ETP holdings to grow to 197,536 BTC by the end of May. Momentum has further strengthened in early June, pushing the global BTC ETP holdings to a new all-time high of 205,008 BTC two days into June.

The Canadian Purpose ETF Led Bitcoin Inflows into ETPs

In particular, the report highlighted that Canadian BTC ETPs saw massive net inflows of 10,182 Bitcoin in the month of May and the highest in one year. The surge of Bitcoin inflows was almost entirely directed toward the Canadian Purpose ETFs, further demonstrated by the chart below, courtesy of the report.

US Bitcoin Inflows Were Low. Australian Bitcoin ETF Off to A Slow Start

With respect to Bitcoin inflows into ETPs in the United States, the report concluded that US-based BTC ETFs saw a very slow month in May with net inflows of 210 BTC.

Similarly, the newly launched Australian Bitcoin ETFs kicked off at a slow pace, ‘amassing an AUM of 240 BTC two weeks after launching.’

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