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Bitcoin exchange-traded products (ETPs) attracted $790 million in inflows last week, signaling a cautious yet sustained investor interest amid shifting market dynamics favoring Ethereum.
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Despite a slowdown from the previous three-week average of $1.5 billion, global crypto ETPs continue to set new records, with total assets under management reaching $188 billion.
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According to CoinShares’ head of research, James Butterfill, the moderation in Bitcoin inflows reflects growing investor caution as the cryptocurrency nears its all-time high, while Ethereum ETPs maintain strong momentum.
Bitcoin ETP inflows slow to $790M amid record crypto fund growth; Ethereum gains traction with 11th consecutive week of inflows, per CoinShares data.
Bitcoin ETP Inflows Moderate but Remain Dominant in Crypto Market
Last week, Bitcoin (BTC) ETPs led crypto investment products with $790 million in inflows, accounting for 76% of total crypto ETP inflows. This figure represents a notable deceleration compared to the preceding three weeks, which averaged $1.5 billion weekly. CoinShares’ research head, James Butterfill, attributes this moderation to increased investor caution as Bitcoin approaches its historic price peaks. Despite the slowdown, Bitcoin remains the primary driver of inflows, underscoring its continued appeal as a flagship digital asset within institutional portfolios.
Ethereum ETPs Show Sustained Growth and Shifting Investor Sentiment
Ether (ETH) ETPs recorded $225 million in inflows last week, marking their 11th consecutive week of positive net inflows. This sustained interest highlights a significant shift in investor sentiment towards Ethereum-based products. Butterfill notes that weekly inflows into Ether ETPs have averaged 1.6% of assets under management (AUM) during this period, doubling Bitcoin’s 0.8% average. This trend suggests growing confidence in Ethereum’s long-term value proposition, driven by its robust ecosystem and upcoming network upgrades.
Record-Breaking Crypto ETP Assets Under Management and Market Impact
Global crypto exchange-traded products collectively amassed $1.03 billion in inflows for the week ending July 4, pushing year-to-date inflows to nearly $19 billion—a new historical high. The total assets under management in crypto ETPs climbed to $188 billion, up from $184.4 billion the previous week. These figures reflect a broadening institutional acceptance and increasing capital allocation towards regulated crypto investment vehicles, which offer enhanced liquidity and transparency compared to direct asset holdings.
BlackRock’s Dominance in Crypto Fund Inflows
BlackRock’s crypto funds captured $436 million of last week’s inflows, representing 42% of the total inflows by issuers. This substantial share underscores BlackRock’s growing influence in the crypto asset management space and highlights investor preference for established financial institutions offering regulated crypto exposure. The firm’s strategic positioning may further catalyze mainstream adoption of crypto ETPs, especially as regulatory clarity improves globally.
Market Volatility and Investor Behavior
Despite persistent volatility across major digital assets, including Bitcoin and Ether, investor appetite for crypto ETPs remains resilient. The inflow patterns suggest a nuanced market environment where investors balance optimism about long-term growth with caution near price peaks. This dynamic is reflected in the moderation of Bitcoin inflows alongside steady gains in Ethereum products, indicating diversified investment strategies within the crypto space.
Conclusion
The latest data from CoinShares reveals a maturing crypto investment landscape, where Bitcoin continues to lead inflows despite a recent slowdown, and Ethereum gains momentum as a favored alternative. With crypto ETP assets under management reaching unprecedented levels and major players like BlackRock driving significant inflows, the sector is poised for continued institutional growth. Investors should monitor these evolving trends closely, as they signal shifting preferences and increasing sophistication in crypto asset allocation.
