Bitcoin Soars as Investors Pour $39.4 Billion into Funds – Largest Inflow in Nine Weeks!

New York, NY – During the week ending June 5, 2024, investors showed a positive trend by purchasing a net of $39.4 billion in fund assets, marking the largest weekly inflow in nine weeks. This data includes both conventional funds and ETFs, according to Lipper’s Global Fund Flows application.

Money market funds, taxable bond funds, equity funds, tax-exempt bond funds, and commodities funds all experienced inflows during this period. However, both mixed-assets funds and alternative investments reported outflows.

Active equity funds faced outflows, while passively managed equity funds attracted new capital, continuing their streak of 11 consecutive weeks of positive inflows. The trend was also reflected in both active and passive fixed income funds, which saw an influx of capital over the past week.

Spot bitcoin ETFs had a notable inflow of $1.2 billion for the week, with Fidelity Wise Origin Bitcoin Fund leading the way with a $602 million inflow, the largest since March 13, 2024.

In terms of index performance, U.S. broad-based equity indices, such as the S&P 500, Nasdaq, Russell 2000, and DJIA, all reported gains at the close of the fund-flows week. Additionally, broad-based fixed income indices saw positive returns for the week.

Overseas broad-based indices also showed mostly positive returns, with some exceptions. The DAX Total Return, FTSE 100, Nikkei 225, and S&P/TSX Composite all appreciated, while the Shanghai Composite experienced a decline for the second consecutive week.

Interest rates also saw movement during the week, with both two-year and 10-year Treasury yields falling. The 30-year fixed-rate average decreased, while the U.S. Dollar Index and VIX also experienced decreases.

Exchange-traded equity funds recorded a $9.0 billion weekly inflow, with large-cap equity ETFs, sector equity ETFs, and equity income ETFs leading the way in attracting new capital. On the other hand, world sector equity ETFs, small-cap ETFs, and developed international markets ETFs faced outflows.

These trends were mirrored in the exchange-traded fixed income funds, where high-yield ETFs, government & Treasury ETFs, and general domestic taxable fixed income ETFs saw inflows, while short/intermediate investment-grade ETFs experienced outflows.

Overall, the week ending June 5, 2024, showcased positive movements in various fund flows and indices across different asset classes, reflecting investor sentiment and market conditions during that period.