July Crypto Inflows Exceed $3B, Driven by Bitcoin ETF Demand

Crypto investment products experienced a notable boom in July surpassing $3 billion in inflows, driven primarily by demand for Bitcoin and Ethereum ETFs. Are we witnessing a new era for crypto investments?

According to CoinShares' latest weekly report, crypto investment products saw a third consecutive week of inflows. These reached $1.35 billion last week alone. This surge pushed total inflows for July past the $3 billion milestone. ETP trading volumes increased by 45% week-on-week. They rose to $12.9 billion. This represented only 22% of the overall crypto market volume.

Bitcoin-related products dominated the inflows. They contributed a staggering 95% of the total with $1.27 billion. Leading the pack were BlackRock’s IBIT and Fidelity’s FBTC. Their BTC ETFs attracted nearly $1 billion in inflows last week. Conversely, short-bitcoin ETPs saw outflows of $1.9 million. This brought total outflows since March to $44 million. It equates to 56% of assets under management.

James Butterfill head of research at CoinShares, highlighted that this trend reflects enduring positive investor sentiment. This follows Bitcoin's halving event in April.

Ethereum products also saw a positive trend. Last week, $45 million in inflows brought its year-to-date (YTD) inflows to $103 million surpassing Solana. The rise in Ethereum inflows is linked to the upcoming launch of several spot ETFs. This includes products from 21Shares, Fidelity Franklin Templeton, Invesco, and VanEck set to trade on July 23. This is pending regulatory approval.

Solana experienced $9.6 million in inflows last week but lags behind Ethereum with $71 million YTD. Litecoin recorded $2.2 million in inflows. Chainlink Cardano and Binance collectively saw $1.5 million.

Despite these positive trends, blockchain equities faced outflows of $8.5 million last week. Regionally the US and Switzerland saw significant inflows. The US saw $1.3 billion. $66 million occurred in Switzerland. Brazil and Hong Kong experienced minor outflows of $5.2 million and $1.9 million.

What does this surge in inflows mean for the future of crypto investments? With new ETFs launching. Investor sentiment remains high. The crypto market appears poised for continued growth.