Crypto investors splurge $3.2b in 3 weeks

CoinShares noted that crypto investors have invested $3.2 billion in digital asset investment products in the past three weeks, indicating an upward trend.

Crypto investors continued a three-week streak of positive flows, investing $1.35 billion last week. Most of the capital flowed into ETFs, with crypto-backed funds seeing a 45% increase in weekly volume.

Bitcoin (BTC) products led the way, particularly in the U.S., taking in $1.24 billion between July 15 and July 19. Spot Bitcoin ETFs on Wall Street saw 11 consecutive days of net inflows before last week’s surge. Products from issuers like BlackRock and Grayscale have more than $60 billion in assets and $17 billion in cumulative net inflows since January, according to data provider SoSoValue.

Ethereum attracts attention from crypto investors

Ethereum (ETH) has overtaken altcoin rival Solana (SOL) for the most inflows since the beginning of the year (YTD). Following last week’s $45 million inflows, ETH assets have received $103 million YTD, while SOL has $71 million.

The surge in demand for Ethereum-based products comes as investors and issuers await the U.S. Securities and Exchange Commission’s approval of spot ETH ETFs this week. Ahead of the SEC’s final approval, the NYSE has already approved Arca, Bitwise, and Grayscale to list and trade shares of spot Ethereum ETFs.

Ethereum is seen as the next cryptocurrency to take on the institutional ETF wrapper after Bitcoin, a development that many expect will pave the way for more digital asset ETFs. Issuers like VanEck have taken the initiative to apply for a spot Solana ETF.

SOL ETF proposals have so far not included staking language, just as staking was removed from spot Ether ETF applications. However, SEC Commissioner Hester Peirce said the agency could consider allowing staking in crypto ETFs.

ETFStore President Nate Geraci also predicted that combined ETFs featuring Bitcoin, Ethereum, and Solana will soon be launched.

Guess…

An ETF issuer will apply to combine a spot BTC, ETH, and SOL ETF in the next few months.

We are rapidly moving towards index-based and actively managed crypto ETFs.

— Nate Geraci (@NateGeraci) July 22, 2024