The cryptocurrency market has seen a substantial surge in investment, with institutional inflows into digital asset investment products reaching a new high of $17.8 billion year to date. Bitcoin and Ethereum have emerged as the frontrunners in this remarkable trend.
This influx marks a potential recovery for the broader crypto market, which saw over $1.44 billion in inflows last week alone. Bitcoin significantly contributed to this figure, attracting $310 million in investments on July 12.
According to CoinShares data, this year’s total inflows for all crypto assets have surpassed the previous record of $10.6 billion set in 2021. The report highlights that the majority of these investments came from the United States, with Switzerland, Hong Kong, and Canada also making notable contributions. Specifically, the US led the charge with $1.3 billion in inflows for the week, followed by Switzerland with $58 million, Hong Kong with $55 million, and Canada with $24 million.
Bitcoin ETFs experienced their fifth-largest week of institutional inflows, pulling in over $1.35 billion, including the significant $310 million on July 12. This surge in investment helped propel Bitcoin’s price to above $60,000, currently standing at $63,000.
CoinShares attributes this heightened investment activity to the recent price dip caused by the German government’s sale of 50,000 BTC assets. The reduced Bitcoin prices encouraged investors to bolster their portfolios. Additionally, a lower-than-expected Consumer Price Index (CPI) in the US contributed to a positive shift in market sentiment.
Ethereum also saw significant inflows, securing $72.1 million last week, making it the second-highest after Bitcoin. The anticipation surrounding the imminent launch of the first-ever spot Ethereum Exchange Traded Funds (ETFs) in the United States has fueled this interest. Multiple financial institutions, including BlackRock and Fidelity, are set to issue these ETFs, with the US Securities and Exchange Commission expected to provide final comments early this week.
Apart from Bitcoin and Ethereum, other altcoins like Solana, Avalanche, and Chainlink also experienced inflows, receiving $4.4 million, $2 million, and $1.3 million, respectively.
This surge in institutional investment underscores the growing confidence in the cryptocurrency market and signals a potential resurgence as major digital assets continue to attract significant capital.
