Ethereum Pushes Crypto Funds to $1.9B Inflows in Single Week
Demand continues to remain very high for digital asset investment products, as investors injected another $1.9 billion into such products last week, marking their fifteenth week of inflows. CoinShares’ latest report states that this increase is mainly due to Ethereum and altcoins, even as Bitcoin funds suffered a little bit of outflow.
Record Month for Crypto Funds Amid Market Volatility
Investors invested money into crypto products despite the price drop, with Bitcoin sitting at $115,000 and Ethereum at $3,600. The total inflows in July have reached $11.2 billion, surpassing the previous record of December 2024 after the U.S. election. So far this year, total inflows into crypto have hit $29.5 billion, with assets under management (AUM) reaching $221.4 billion.
Ethereum ETPs Steal the Spotlight
In just seven days, Ethereum exchange-traded products (ETPs) gained $1.59 billion, the second largest-ever weekly inflow. Recently, Ethereum saw remarkable price growth. This growth stemmed from increased confidence by investors in ETH’s long-term use case in Web3.
Other Altcoins Also Saw Notable Inflows
- Solana (SOL): $311.5 million
- XRP: $189.6 million
- SUI: $8 million
There are now more people investing in altcoins than Bitcoin. The net inflow of assets into altcoins was more than $80 million.
Bitcoin Pulls Back Amid ETF Anticipation
While altcoins were gaining traction, Bitcoin ETPs saw a mild outflow of $175 million, ending a streak of 12 days of inflows. Experts say that this may not mean that investors are feeling negative about Bitcoin. They are said to be pocketing short-term profits and pondering the single asset ETF approvals for altcoins in the US.
Litecoin and Bitcoin Cash, however, did not do as well, seeing small outflows. This hints towards greater selectivity from investors with respect to newer and more actively developed altcoin ecosystems.
Institutional Participation and Regional Trends
iShares contributed to last week’s inflows to institutions in crypto firms, which amounted to $1.56 billion. Other issuers included 21Shares with $80 million and Grayscale at $78 million. There were big outflows from Fidelity and ARK Invest.
However, pension funds, family offices, and even sovereign wealth funds are still injecting liquidity into the digital asset space, which is positive.
The United States attracted almost $2 billion in inflows, signaling interest amid improving regulatory clarity. Germany came second with $70 million, and the likes of Brazil and Canada saw small outflows.
Conclusion
The most recent crypto fund inflow of $1.9 billion is a loud statement from institutions and retail investors that they still believe in the rise of digital assets. This is especially true for Ethereum. Altcoins with strong fundamentals are attracting more interest as the US regulatory crackdown looms. Increasingly, digital assets have become a legitimate long-term investment class after ETF approvals. This trend shows no sign of slowing down as July breaks records.
