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This day in crypto, international crypto funds dismissed market upheavals amidst rising tensions in the Middle East as investors funneled over $1 billion into crypto products last week, Strategy’s Michael Saylor has hinted at a further Bitcoin acquisition after the asset momentarily dipped below $100,000 over the weekend, and Texas Governor Greg Abbott has formally sanctioned the establishment of the Texas Strategic Bitcoin Reserve.
Crypto funds record $1.2 billion inflows despite market frenzy: CoinShares
Cryptocurrency investment products maintained their strong appeal among investors last week despite significant price drops in major crypto assets like Bitcoin and Ether.
Global cryptocurrency exchange-traded products (ETPs) noted $1.24 billion of inflows for the trading week concluding Friday, as CoinShares reported on Monday.
With the latest influxes, crypto ETPs kept shattering year-to-date (YTD) inflow records, establishing a new historical peak at $15.1 billion, stated CoinShares’ research head, James Butterfill.
Even with ongoing inflows, total assets under management (AUM) in crypto ETPs slightly declined from $179 billion in the prior week to $176.3 billion by the week’s end.
Bitcoin (BTC) ETPs experienced a second consecutive week of inflows, aggregating $1.1 billion, even though BTC prices fell from approximately $108,800 on June 16 down to $103,000 by the week’s close, according to CoinGecko.
The sustained growth in Bitcoin ETP dynamics despite the drop in spot price suggested that investors were capitalizing on weaknesses, proposed CoinShares’ Butterfill.
“This sentiment was additionally reinforced by minor outflows from short-Bitcoin products, amounting to $1.4 million,” he remarked.
Ether (ETH) ETPs marked their ninth consecutive week of inflows, accumulating $124 million last week and elevating the total inflow run to $2.2 billion.
“This signifies the longest streak of inflows since mid-2021, illustrating the persistent strong investor sentiment towards the asset,” Butterfill pointed out.
Saylor suggests upcoming Bitcoin acquisition as investor files lawsuit over Strategy’s Q1 losses
Michael Saylor has reiterated that Strategy might acquire more Bitcoin, though the company once recognized as MicroStrategy and its executives are facing an investor lawsuit regarding its $5.9 billion first-quarter loss on Bitcoin holdings.
Saylor shared a graph portraying Strategy’s previous Bitcoin (BTC) purchases to X on Sunday with the remark: “Nothing Halts This Orange.”
His earlier similar cryptic X updates have preceded Strategy’s Bitcoin purchases. The company holds the largest Bitcoin inventory of any public firm at 592,100 BTC, valued around $59.7 billion, with Bitcoin trading just beneath $101,000.
However, this comes just days after Strategy and its leading executives were sued by an investor on Thursday, alleging they violated their fiduciary responsibilities prior to disclosing a multibillion-dollar Bitcoin loss in its first-quarter report.
Texas governor enacts bill introducing Bitcoin to official reserves
Texas Governor Greg Abbott has enacted Senate Bill 21 (SB21), formally permitting the establishment of the Texas Strategic Bitcoin Reserve, a state-managed fund that will maintain Bitcoin as part of the state’s enduring financial assets.
The newly formed reserve functions independently from Texas’ general treasury system and seeks to bolster the state’s financial resilience while potentially serving as a safeguard against inflation, according to the legislative text.
Moreover, only assets with a market capitalization surpassing $500 billion are eligible for inclusion, a criteria currently satisfied solely by Bitcoin (BTC).
The fund will be overseen by the Texas Comptroller of Public Accounts and guided by an advisory committee comprised of three crypto investment specialists.
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