Institutional inflow into investment products of digital assets has hit a new record of $17.8 billion year to date with Bitcoin and Ethereum leading the pack.
This new record spells the beginning of a possible recovery of the general crypto market.
The new record follows a very impressive week for crypto assets investment products pulling in over $1.44 billion in inflows last week with Bitcoin pulling in over of $310 million alone on July 12.
Coinshares data reveals that the year-to-date inflow for all crypto assets has reached $17.8 billion surpassing the previous record of $10.6 billion in 2021.
The Coin shares report which they shared on their medium blog revealed that the biggest share of the inflow came from United States buyers with Switzerland-based buyers also making record amounts of investment.
“Regionally, the US led with US$1.3bn for the week, although the positive sentiment was seen across all other countries, most notable being Switzerland (a record this year for inflows), Hong Kong and Canada with US$58m, US$55m and US$24m respectively.” the report stated.
Bitcoin ETF experienced its fifth largest week of institutional inflow pulling in over $1.35 billion including a whopping $310 million on July 12 alone.
This impressive inflow of funds to Bitcoin ETF helped push the price of the primary crypto asset to above $60,000 and it’s currently $63,000 at the time of report.
Coinshares argues that the impressive buying activity around Bitcoin last week is a result of the dip caused by the massive sell-off of 50,000 BTC assets by the German government. The lower price of Bitcoin inspired investors to increase their Bitcoin portfolio by investing heavy amounts in it.
“We believe price weakness due to the German Government bitcoin sales and a turnaround in sentiment due to lower than expect CPI in the US prompted investors to add to positions.” Coinshares posted.
Ethereum on the other hand witnessed the second-largest inflow after Bitcoin with a total inflow of $72.1 million last week.
The increased inflow is driven by the excitement around the proposed launching of the first-ever spot Ethereum Exchange Traded Funds (ETFs) in the United States in a week.
The issuers of spot Ethereum ETFs in the US are expected to hear final comments from the Securities and Exchange Commission in the country early this week according to credible sources.
What to Know
- Ethereum ETFs which are on the horizon are to be issued by eight different financial institutions including Blackrock and Fidelity.
- Apart from Ethereum, other altcoins like Solana, Avalanche and Chainlink saw inflows of US$4.4m, US$2m and US$1.3m respectively.
