n July, investment in cryptocurrencies hit the $3 billion mark mainly on the back of strong flows into Bitcoin ETFs.
Surge in Crypto Investments
Crypto asset investment witnessed huge inflows in the past week totaling approximately $1.35 billion. Crypto investment products also posted steady buyers’ accumulation with $3 billion in July according to CoinShares. The activity in Exchange Traded Products (ETPs) recorded a 45% week-on-week rise in volume hitting up to $12. 9 billion. This Increase in inflow is said to be due to increased probability for the former president Trump to be re-elected in 2024.
Dominance of Bitcoin and Ethereum
Bitcoin was by far the most popular choice and accounted for 95 percent of inflows with $1. 27 billion. BlackRock and Fidelity’s Bitcoin ETF were leading the way with the most volume. On the other hand, Bitcoin ETFs witnessed slight outflows as well, accounting to $1. 9 million.
Ethereum's Positive Trajectory
Similarly, Ethereum products also registered significant inflows with $45 million within the last week, taking YTD inflows to $103 million. This increase was due to the expectation of the spot ETFs of Ethereum that are expected to go live on Tuesday when the regulators grant their approvals.
July Crypto Surge Boosts Investor Confidence
The increase in interest and fast recovery in crypto investments in July showcases the increased interest and confidence in the sector among investors. This is mainly driven by the approval of the upcoming ETH ETF and the steady increase of inflows in the BTC ETF, and the positive outlook that the former president of the USA Donald Trump has shown. All of this suggests a positive implication to the crypto space.
