Crypto investment surge: $1.35B inflow in a week

Crypto investment products experienced a substantial influx of $1.35 billion last week, according to CoinShares’ latest report on July 22. This marks the third consecutive week of significant inflows, totaling $3.2 billion over the period.

As per the report, the surge in investor interest was accompanied by a 45% week-on-week increase in ETP trading volumes, reaching $12.9 billion. However, this figure still represents a relatively low 22% of the broader crypto market activity.

📈 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

Additionally, regional trends painted a mixed picture, with the United States and Switzerland leading the charge. The U.S. saw inflows of $1.3 billion, while Switzerland contributed $66 million. In contrast, Brazil and Hong Kong experienced minor outflows of $5.2 million and $1.9 million, respectively.

Meanwhile, Bitcoin (BTC) continued to dominate the inflow landscape, attracting $1.27 billion last week. Short-Bitcoin ETPs faced further outflows of $1.9 million, extending a trend that has seen $44 million exit these products since March, a staggering 56% of assets under management (AuM). This shift underscores the persistent positive sentiment surrounding Bitcoin following the April halving event.

Digital Asset Fund Flows Weekly Report | Source: CoinShares

Crypto resurgence: Ethereum and altcoins

Ethereum (ETH) seems to be winning back investor trust, attracting $45 million in funds last week. This surge has propelled Ethereum to the forefront among alternative cryptocurrencies in terms of year-to-date (YTD) inflows, now totaling $103 million. Solana (SOL), which previously led the pack, received $9.6 million in inflows but now lags behind Ethereum with a YTD total of $71 million. Litecoin (LTC) also saw notable interest, drawing in $2.2 million in inflows.

While digital assets were on the rise, blockchain stocks struggled, witnessing an outflow of $8.5 million in the past week. This ongoing pattern persists despite the majority of blockchain-focused ETFs surpassing global equity benchmarks.

Nevertheless, the recent surge of funds flowing into crypto investment products indicates a growing trust among investors in the market. This trend suggests a potential shift in market sentiment and could mark the beginning of a new era of expansion for the digital asset ecosystem.