Digital Asset Products See $1.35 Billion in Inflows, Extending 3-Week Run to $3.2 Billion

Digital asset investment products saw a substantial inflow of $1.35 billion last week, bringing the total inflows over the past three weeks to an impressive $3.2 billion.

Bitcoin remained a popular choice among investors, attracting $1.27 billion in inflows last week, CoinShares said in a report on Monday.

The report added that short-bitcoin ETPs saw outflows of $1.9 million, resulting in a total outflow of $44 million since March.

Despite this, the outflows represent only 56% of the assets under management (AuM), indicating enduring positive sentiment since the Bitcoin halving event in April.

ETPs Trading Volume Surge

Alongside the influx of funds, trading volumes of exchange-traded products (ETPs) also experienced a significant surge, rising by 45% week-on-week to reach $12.9 billion.

However, these volumes accounted for a relatively lower 22% of the broader crypto market volumes.

The regional breakdown showed a mixed picture compared to the previous week.

The United States and Switzerland witnessed substantial inflows of $1.3 billion and $66 million, respectively.

On the other hand, Brazil and Hong Kong experienced minor outflows totaling $5.2 million and $1.9 million, respectively.

📈 Digital asset investment products continued to see buying last week with inflows of $1.35bn. #Bitcoin alone saw inflows of $1.27bn and Ethereum saw another $45m The latter has overtaken #Solana as the #altcoin with the most inflows YTD.

Learn more: https://t.co/6pvHz1OdR1 pic.twitter.com/G0hozbRgQX

— CoinShares (@CoinSharesCo) July 22, 2024

Likewise, Ethereum showed signs of a positive turnaround, with an additional $45 million in inflows last week.

This surpasses Solana as the altcoin with the highest year-to-date (YTD) inflows, which currently stand at $103 million.

Solana also experienced inflows amounting to $9.6 million last week, but its YTD inflows of $71 million now lag behind Ethereum.

Among other altcoins, Litecoin was the only one to witness inflows surpassing $1 million, with $2.2 million reported last week.

In contrast to token investments, blockchain equities continued to experience outflows of $8.5 million last week, despite most exchange-traded funds (ETFs) outperforming global equity indices.

Crypto Market Continues to Recover as ETH ETFs Loom

The continued recovery in the crypto market comes amid ongoing optimism around the launch of spot Ether ETFs.

Last week, the Chicago Board Options Exchange (CBOE) announced that five spot Ethereum ETFs will begin trading on July 23, pending regulatory effectiveness.

The five spot Ether ETFs that will commence trading are the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF.

In a recent note, Sergei Gorev, a risk manager at YouHodler, said that while Ether ETFs might not have the same effect as Bitcoin ETFs, several factors come into play.

Ethereum remains the second most popular coin, but the issue of coin staking needs to be fully resolved.

Some investors may hesitate to give up staking rewards, as staking will not be available for ETF investments on Ethereum at present.

Additionally, the timing of the ETF launch during the summer, when many investors are on vacation, may influence market dynamics.

However, Ethereum has positive aspects such as being a deflationary coin with no pressure from miner sellers, unlike Bitcoin.

“As for the positive part, ETH is rather a deflationary coin, the amount of which is slowly decreasing in the total mass. Plus, ETH has no pressure from miner sellers, who are always present in BTC trading,” Gorev wrote.