Key Points
- Crypto investors have invested $3.2 billion in digital asset investment products in the past three weeks.
- Bitcoin (BTC) and Ethereum (ETH) products attracted the most investments, with BTC receiving $1.24 billion and ETH receiving $103 million YTD.
Crypto investors have been actively investing in digital asset investment products, injecting a significant $3.2 billion over the last three weeks. This trend reflects a bullish sentiment towards these assets.
Increased Investments in BTC and ETH
In the past week alone, investors have allocated $1.35 billion to these assets. A large portion of this capital was invested in ETFs, which saw a 45% increase in volume week-on-week.
Among these, Bitcoin (BTC) products, particularly in the U.S., were the most popular. These products attracted $1.24 billion between July 15 and July 19. Spot Bitcoin ETFs on Wall Street experienced net inflows for 11 consecutive days before last week’s surge. Issuers like BlackRock and Grayscale manage over $60 billion in assets and have seen $17 billion in cumulative net inflows since January.
Ethereum Gains Traction
Ethereum (ETH) also saw significant interest from investors, surpassing Solana (SOL) with the highest inflows year-to-date (YTD). After last week’s $45 million influx, ETH products have received $103 million YTD, compared to SOL’s $71 million.
This increased demand for Ethereum-based products comes as the U.S. Securities and Exchange Commission is expected to approve spot ETH ETFs this week. The NYSE Arca has already given its approval to list and trade spot Ethereum ETF shares from Bitwise and Grayscale.
Many anticipate that Ethereum will be the next cryptocurrency to be wrapped in an institutional ETF after Bitcoin. This could pave the way for more digital asset ETFs. Issuers such as VanEck have already taken steps to file for a spot Solana ETF.
However, the SOL ETF applications have not included staking language so far, similar to how staking was removed from spot Ether ETF applications. SEC commissioner Hester Peirce has mentioned that the agency may consider allowing staking in crypto ETFs. The president of ETFStore, Nate Geraci, also predicted that combined ETFs featuring Bitcoin, Ethereum, and Solana will likely debut soon.
