Crypto Investment Products Attract $441M in Inflows amid Market Corrections

UTC by Chimamanda U. Martha · 3 min read
Crypto Investment Products Attract $441M in Inflows amid Market Corrections
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Despite the positive inflow, volumes in exchange-traded products (ETPs) remained remarkably low, currently standing at around $7.9 billion as of last week.

The month of July started on a positive note for crypto asset investment products as investors poured a total of $441 million into the industry last week. This surge in crypto investments comes despite recent price volatility stemming from the Mt. Gox debacle and selling pressure from the German government.

According to a weekly market report by CoinShares, Bitcoin (BTC), the largest crypto asset by market capitalization, saw the lion’s share of the inflows, with $398 million funneled into BTC investment products in the first week of July.

Crypto Sees Massive Inflows in July

While Bitcoin dominated the inflows, contributing up to 90% of the total investments, other digital assets also attracted significant investments. Ethereum (ETH) and various altcoins saw positive inflows, though they were overshadowed by Bitcoin’s substantial numbers.

For example, digital asset investors poured around $16 million into Solana (SOL) related investments last week. This product outperformed other altcoins from an inflows perspective, bringing its year-to-date (YTD) inflows to $57 million.

In contrast, sentiment surrounding Ethereum seemed to have diminished despite securing initial approval of its exchange-traded funds (ETF) from the United States Securities and Exchange Commission (SEC). Ethereum recorded only $10 million in inflows in the first week of July, remaining the only asset to have seen net outflows YTD.

CoinShares attributed the market performance in terms of inflows to strong buying sentiment among investors who view the recent price weakness as a strategic buying opportunity to increase their crypto holdings.

However, the company noted that this improved sentiment has not been reflected in blockchain equities, which recorded additional outflows of $8 million last week.

Low Participation in Exchange-Traded Products

Despite the positive inflow, volumes in exchange-traded products (ETPs) remained remarkably low, currently standing at around $7.9 billion as of last week. CoinShares data shows that this decline represents a 17% lower participation rate compared to the total market for trusted exchanges.

In terms of regional performance, the United States took the lead with $384 million generated from the region alone.

Opportunistic buying occurred across different nations worldwide, with Hong Kong recording an overall inflow of $32 million.  Countries like Switzerland saw about $24 million in inflow and Canada recorded only $12 million.

Germany stood out as an outlier. While most other nations experienced inflows into digital asset products, Germany saw $23 million moved out of its digital asset investment products last week. The German government has been gradually dumping its Bitcoin holdings in the market since June. As of July 8, the country still holds around $2.22 billion worth of BTC.

Altcoin News, Bitcoin News, Cryptocurrency News, News
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