Crypto funds post $1B inflows with net assets breaking new highs

Cryptocurrency investment products continued to attract capital last week, despite ongoing volatility in major digital assets like Bitcoin and Ether.

Global crypto exchange-traded products (ETPs) saw inflows of $1.03 billion for the trading week ending July 4th, according to a report released Monday by CoinShares.

These new inflows propelled crypto ETPs to break their year-to-date (YTD) inflow records, establishing a new all-time high just shy of $19 billion, stated James Butterfill, Head of Research at CoinShares.

Assets under management (AUM) in crypto ETPs also reached a new peak of $188 billion, up from $184.4 billion the previous week.

Bitcoin Dominates Inflows with $790 Million

Bitcoin (BTC) ETPs were the primary driver of inflows last week, accounting for $790 million, or 76% of the total crypto ETP inflows.

However, Butterfill pointed out that BTC ETP inflows have moderated compared to the previous three weeks, which saw an average of $1.5 billion in weekly inflows.

Crypto ETP flows by asset as of July 4 (in millions of US dollars). Source: CoinShares

“The moderation in inflows suggests that investors are becoming more cautious as Bitcoin approaches its all-time high price levels,” he explained.

Is There a Shift to Ether ETFs?

Ether (ETH) ETPs followed with $225 million of inflows, marking their eleventh consecutive week of inflows.

“On a proportional basis, weekly inflows during this run have averaged 1.6% of AUM, significantly higher than Bitcoin’s 0.8%,” Butterfill noted, indicating a "notable shift in investor sentiment in favour of Ethereum.”

BlackRock's crypto funds handled the majority of crypto inflows last week, accounting for $436 million, or 42% of all inflows by issuers.