Crypto investors splurge $3.2b in 3 weeks

by

As a seasoned crypto investor with over a decade of experience in this dynamic market, I’ve witnessed countless ebbs and flows that have shaped the digital asset landscape. The recent trend of massive inflows into cryptocurrency investment products, totaling $3.2 billion in just three weeks, is nothing short of remarkable.

In the past three weeks, there has been a substantial inflow of funds to the tune of $3.2 billion into cryptocurrency investment products as per the latest report from CoinShares, signaling a positive outlook among investors.

Last week, there was a third consecutive inflow of funds totaling $1.35 billion from crypto investors. The majority of these investments went toward Exchange-Traded Funds (ETFs). Notably, the weekly volume for crypto-backed funds experienced a significant surge of 45%.

Bitcoin-related financial products, primarily based in the U.S., saw a significant intake of $1.24 billion between July 15 and July 19. Wall Street’s Spot Bitcoin ETFs experienced net inflows for an uninterrupted eleven-day stretch before last week’s surge. Notable issuers such as BlackRock and Grayscale currently manage assets totaling over $60 billion and have recorded a cumulative $17 billion in net inflows since the beginning of the year, according to SoSoValue’s data.

Ethereum finding favor from crypto investors

As an analyst, I’ve observed that Ethereum (ETH) has surpassed its altcoin rival Solana (SOL) in terms of the largest inflows this year-to-date (YTD). After a significant $45 million influx last week, Ethereum products have attracted a total of $103 million YTD. In comparison, Solana’s products have seen inflows amounting to only $71 million during the same period.

The anticipation among investors and issuers that the U.S. Securities and Exchange Commission (SEC) will give its approval for spot Ethereum Exchange-Traded Funds (ETFs) this week has led to a surge in demand for Ethereum-related products. Prior to the SEC’s decision, the NYSE Arca has already given its approval for listing and trading Ethereum ETF shares from Bitwise and Grayscale.

NYSE-Arca-certifies-its-approval-for-listing-and-registrationDownload

Ethereum is widely regarded as the leading candidate among cryptocurrencies to receive an institutional Exchange-Traded Fund (ETF) wrapper, following in Bitcoin’s footsteps. This anticipated development could lead to more digital asset ETFs being introduced. Companies such as VanEck have already taken steps towards filing for an Ethereum ETF, specifically a spot Solana ETF.

The bids for the SOL ETF have yet to include staking provisions, akin to the absence of staking in proposals for spot Ethereum ETFs. Nevertheless, SEC Commissioner Hester Peirce hinted that the Securities and Exchange Commission could potentially permit staking in crypto-backed ETFs.

The president of ETFStore, Nate Geraci, anticipates the launch of ETFs combining Bitcoin, Ethereum, and Solana in the near future.

A leading ETF provider is expected to submit an application for a Bitcoin, Ethereum, and Solana composite ETF within the upcoming months. The trend indicates that we are moving towards the availability of both passive index and actively managed cryptocurrency ETFs.

— Nate Geraci (@NateGeraci) July 22, 2024

Read More

2024-07-22 21:38