Markets
July Cryptocurrency Flows Surpass $3 Billion Mark, Driven by Bitcoin ETF Demand
Cryptocurrency investment products saw their third consecutive week of inflows last week, reaching $1.35 billion. That pushed total inflows for July past $3 billion, according to the latest weekly report from CoinShares. report.
It is worth noting that ETP trading volumes also increased significantly last week, increasing by 45% from the previous week to reach $12.9 billion. However, this large volume only represents 22% of the overall cryptocurrency market volume.
Positive feelings
Bitcoin-related products were the largest contributors, contributing 95% of the total at $1.27 billion. The flows were dominated by BlackRock’s IBIT and Fidelity’s FBTC, whose BTC ETFs saw nearly $1 billion in inflows last week.
Conversely, short-bitcoin ETPs saw outflows of $1.9 million, bringing total outflows since March to $44 million, representing 56% of assets under management (AuM).
James Butterfill, research director at CoinSharesexplained that this trend indicates the continued positive sentiment among investors since Bitcoin completed its halving event in April.
Crypto Asset Inflows (Source: CoinShares)
EthereumFinance-related products also saw positive developments, with $45 million in inflows last week. This brings its year-to-date (YTD) inflows to $103 million, surpassing Solana.
The surge in Ethereum inflows is linked to the anticipated launch of its cash exchange-traded funds (ETFs). Last week, the Chicago Board Options Exchange (Cboe) announcement that five products – 21Shares’ CETH, Fidelity’s FETH, Franklin Templeton’s EZET, Invesco’s QETH and VanEck’s ETHV – will begin trading on July 23, subject to regulatory approval.
Solana saw $9.6 million in inflows last week, but still lags behind Ethereum with $71 million year-to-date. Litecoin was the only other altcoin with over $1 million in inflows, recording $2.2 million last week. Chainlink, Cardano, and Binance collectively saw $1.5 million in inflows.
Butterfill added that blockchain stocks faced outflows of $8.5 million last week, despite most ETFs outperforming global stock indices.
At the regional level, the United States and Switzerland recorded significant capital inflows of $1.3 billion and $66 million, respectively. In contrast, Brazil and Hong Kong experienced minor capital outflows of $5.2 million and $1.9 million, respectively.