Markets
July in gold with inflows of $3 billion!
2h30 ▪ 4 min read ▪ by Evans S.
In July, the cryptocurrency market reached an impressive milestone with inflows exceeding $3 billion, largely driven by excitement over Bitcoin ETFs. But what does this wave of investment mean for the future of cryptocurrency, and who are the key players behind it? Let’s decode this wave of interest together.
Cryptocurrency Momentum Unstoppable: Bitcoin ETFs in the Spotlight
Cryptocurrency investment products have seen their third consecutive week of positive inflows, reaching $1.35 billion last week.
This impressive figure has brought July’s total inflows to over $3 billion, according to CoinShares’ latest weekly report. This huge enthusiasm is mainly driven by Bitcoin ETFsthat have captured the attention and wallets of investors.
Last week, trading volumes for exchange-traded products (ETPs) also increased significantly, jumping 45% week-over-week to reach $12.9 billion. However, this high activity only represents 22% of the total cryptocurrency market volume, highlighting the huge growth potential that still exists in this space.
Bitcoin-related products dominated inflows, accounting for 95% of the total at $1.27 billion. BlackRock IBIT and Fidelity’s FBTC were the clear leaders, with their Bitcoin ETFs attracting nearly $1 billion in a single week. A feat that demonstrates the trust investors have in these wealth management giants.
Positive feelings and encouraging prospects
Head of Research at CoinShares, James Butterfill, noted that this trend reflects persistent positive investor sentiment since Bitcoin completed its halving in April.
This optimistic perception is fundamental to understanding why investors continue to massively inject capital into Bitcoin products despite the inherent volatility of cryptocurrencies.
At the same time, Ethereum-related products have also benefited from this wave of positivity, with inflows of $45 million last week.
These inflows brought cumulative year-to-date revenue to $103 million, surpassing Solana. The anticipated launch of Ethereum spot ETFs played a key role in this dynamic, bolstering Etherealits position as a safe bet in the altcoin universe.
Other cryptocurrencies such as Solana and Litecoin have also seen notable performances. Solana has attracted $9.6 million in inflows, although it remains behind Ethereum with $71 million since the beginning of the year.
Litecoin, meanwhile, was the only other altcoin to surpass $1 million in inflows, recording $2.2 million last week.
A contrasting regional dynamic
Capital inflows are not evenly distributed across the world. The United States and Switzerland stood out with significant inflows of $1.3 billion and $66 million, respectively. These figures reflect greater confidence in mature, regulated markets.
In contrast, Brazil and Hong Kong saw small capital outflows, amounting to $5.2 million and $1.9 million, respectively. These outflows could be attributed to economic uncertainties or less favorable regulations, demonstrating the fragility and volatility of cryptocurrency markets in different regions.
Butterfill added that blockchain stocks saw $8.5 million in outflows last week, despite most ETFs outperforming global stock indices. This indicates a potential reallocation of investors’ assets toward products more directly linked to cryptocurrencies.
July saw a surge in cryptocurrency investments, dominated by Bitcoin ETFs. This dynamic suggests a renewed confidence and growing interest in digital assets. However, capital movements remain heterogeneous on a global scale and regulations will continue to play a crucial role in future developments. of the market.
Maximize your Cointribune experience with our Read to Earn program! Earn points for every article you read and access exclusive rewards. Sign up now and start earning rewards.
Click here to join “Read to Earn” and turn your passion for cryptocurrencies into rewards!
by Evans S.
Fascinated by bitcoin since 2017, Evariste has not stopped documenting himself on the subject. If his main interest is on trading, the wise man is desperate to discover all the advanced centers on cryptocurrencies. As an editor, he aspires to permanently provide high-quality work that reflects the state of the sector as a whole.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.