Digital Asset Products See $1.35 Billion in Inflows

A substantial inflow of $1.35 billion was observed in digital asset investment products last week, bringing the total inflows over the past three weeks to an impressive $3.2 billion.

CoinShares reported on Monday that Bitcoin continued to be a popular choice among investors, attracting $1.27 billion in inflows last week.

The report also stated that short-bitcoin ETPs experienced outflows of $1.9 million, which resulted in a total outflow of $44 million since March.

However, the outflows account for only 56% of the assets under management (AuM), suggesting that the positive sentiment has persisted since the Bitcoin halving event in April.

An Increase in the Trading Volume of ETPs

In addition to the influx of funds, the trading volumes of exchange-traded products (ETPs) experienced a substantial increase, increasing by 45% week-on-week to $ 12.9 billion.

Nevertheless, these volumes constituted a relatively lower 22% of the broader crypto market volumes.

In contrast to the previous week, the regional segmentation revealed a mixed picture.

Switzerland and the United States experienced considerable inflows of $66 million and $1.3 billion, respectively.

Conversely, Brazil and Hong Kong experienced minimal outflows totaling $5.2 million and $1.9 million, respectively.

In the same vein, Ethereum demonstrated indications of a positive reversal, as evidenced by an additional $45 million in inflows last week.

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

Last week, Solana also saw inflows of $9.6 million; however, its year-to-date inflows of $71 million are currently behind Ethereum’s.

Last week, Litecoin was the sole altcoin to experience inflows exceeding $1 million, with $2.2 million reported.

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

Crypto Market Continues to Recover as ETH ETFs Loom

In the context of the ongoing optimism surrounding the launch of spot Ether ETFs, the crypto market has continued to recover.

The Chicago Board Options Exchange (CBOE) announced last week that five spot Ethereum ETFs will commence trading on July 23, subject to regulatory effectiveness.

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

In a recent note, Sergei Gorev, a risk manager at YouHodler, stated that while Ether ETFs may not have the same impact as Bitcoin ETFs, numerous factors are at play.

Ethereum continues to be the second most popular cryptocurrency; however, the issue of coin staking requires a comprehensive resolution.

Currently, staking rewards are unavailable for ETF investments on Ethereum, which may cause some investors to hesitate to relinquish them.

Furthermore, the market dynamics may be influenced by the timing of the ETF introduction during the summer, when many investors are on vacation.

Nevertheless, Ethereum has several advantages, including its status as a deflationary cryptocurrency that is not subject to the influence of miner sellers, in contrast to Bitcoin.

“The positive aspect of ETH is that it is a deflationary coin, with a gradual decrease in its total mass.” Additionally, ETH is not subject to the strain of miner sellers, who are consistently present in BTC trading, as Gorev noted.