Today in crypto, global crypto funds shrugged off market turmoil amid escalating conflict in the Middle East as investors poured more than $1 billion into crypto products last week, Strategy’s Michael Saylor has hinted at another Bitcoin purchase after the asset briefly plummeted under $100,000 on the weekend, and Texas Governor Greg Abbott has officially authorized the creation of the Texas Strategic Bitcoin Reserve.
Crypto funds post $1.2 billion inflows despite market panic: CoinShares
Cryptocurrency investment products continued to attract strong investor interest last week despite major crypto assets like Bitcoin and Ether posting notable price drops.
Global crypto exchange-traded products (ETPs) recorded $1.24 billion of inflows for the trading week ending Friday, CoinShares reported on Monday.
With the latest inflows, crypto ETPs continued breaking year-to-date (YTD) inflow records, setting a new historic high at $15.1 billion, said CoinShares’ head of research, James Butterfill.
Despite continued inflows, total assets under management (AUM) in crypto ETPs edged down from $179 billion in the previous week to $176.3 billion by the end of last week.
Bitcoin (BTC) ETPs saw a second consecutive week of inflows, totalling $1.1 billion, despite BTC prices dropping from around $108,800 on June 16 to $103,000 by the end of the week, according to CoinGecko.
The resisting growth in the Bitcoin ETP dynamics despite the spot price decline indicated that investors were buying on weakness, CoinShares’ Butterfill suggested.
“This sentiment was further supported by minor outflows from short-Bitcoin products, which totalled $1.4 million,” he added.
Ether (ETH) ETPs recorded their ninth consecutive week of inflows, netting $124 million last week and bringing the inflow run’s total to $2.2 billion.
“This marks the longest run of inflows since mid-2021, reflecting continued robust investor sentiment toward the asset,” Butterfill noted.
Saylor hints next Bitcoin buy as investor sues over Strategy’s Q1 loss
Michael Saylor has again hinted that Strategy would buy more Bitcoin, though the company formerly known as MicroStrategy and its top brass were hit with an investor lawsuit over its $5.9 billion first-quarter loss on its Bitcoin holdings.
Saylor posted a chart showing Strategy’s past Bitcoin (BTC) purchases to X on Sunday with the caption: “Nothing Stops This Orange.”
His past similar cryptic X posts have been the precursor to Strategy buying Bitcoin. The company has the largest Bitcoin holdings of all public companies at 592,100 BTC, worth around $59.7 billion, with Bitcoin trading just under $101,000.
However, it comes just days after Strategy and the company’s top executives were sued by an investor on Thursday, who claimed they breached their fiduciary duties before reporting a multibillion-dollar Bitcoin loss in its first quarter results.
Texas governor signs bill adding Bitcoin to official reserves
Texas Governor Greg Abbott has signed Senate Bill 21 (SB21), officially authorizing the creation of the Texas Strategic Bitcoin Reserve, a state-managed fund that will hold Bitcoin as part of the state’s long-term financial assets.
The newly established reserve operates independently of Texas’ general treasury system and aims to strengthen the state’s financial resilience while serving as a potential hedge against inflation, according to the bill text.
Furthermore, only assets with a market capitalization exceeding $500 billion are eligible for inclusion, a threshold currently met only by Bitcoin (BTC).
The fund will be administered by the Texas Comptroller of Public Accounts and guided by an advisory committee of three crypto investment professionals.
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