The Largest Inflow Since 2021
We continue to see significant inflows in digital asset investment products. In the week ending on July 14th, products managed by CoinShares, 21Shares, ProShares, and other major cryptocurrency fund providers saw an inflow of $137 million.
According to CoinShares’ statistics, inflows into these crypto funds reached $742 million in the past four weeks, marking the largest inflow since late 2021.
The majority of these inflows, accounting for 99% of the total market, are made up of Bitcoin and its derivatives. However, the largest outflow volume among all cryptocurrency products since the beginning of the year occurred in Ethereum. The outflows reached $74 million. On the other hand, Bitcoin funds observed an inflow of $571 million from the beginning of the year until now, while $14 million flowed into Solana (SOL). Ripple (XRP), Cardano (ADA), and Polygon (MATIC) experienced single-digit inflows (in millions of dollars). The increase in Bitcoin digital asset inflows came after the rise in the spot market last month.
Developments at BlackRock
The world’s largest asset manager, BlackRock, has officially applied to the U.S. Securities and Exchange Commission (SEC) for a spot ETF (Exchange Traded Fund). This development led to both an increase in Bitcoin’s spot price and inflows into funds. Although BlackRock’s application was initially rejected by the SEC, hopes are still high that negotiations will lead to BlackRock obtaining approval.
The review of BlackRock’s application by the SEC and the developments in the Ripple case may continue to bring positive developments to the market.
