Morningstar data shows that Bitcoin ETPs registered in Europe have seen net outflows of $506 million since the beginning of the year, while other cryptocurrency ETPs have attracted small net inflows of $42 million. During this period, the price of Bitcoin has risen by about 40%.
Pierre Debru, head of quantitative research and multi-asset solutions at WisdomTree, said that since the launch of Bitcoin spot ETFs in the US market, the number of customer inquiries for European crypto ETPs has "increased significantly", but this has not yet translated into large inflows. The low fees charged by US Bitcoin ETFs "forced European issuers to lower their fees", thereby "creating a new fee environment in Europe".
Monika Calay, head of UK manager research at Morningstar, said that understanding the short-term fund flows of Bitcoin funds this year "is not a simple task" and market sentiment "remains divided".
She said: “Some see it as a hedge against inflation, others as a new type of money, and many consider it alongside other riskier assets. Historically, Bitcoin halving events have triggered supply shocks that have fueled interest and speculation within the crypto community, but May has seen a wave of gains. As the Bitcoin narrative evolves, market participants must navigate the complexity and uncertainty surrounding this unique asset class.” (Financial Times)
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