2.7 billion USD flows into crypto investment products, growing for 11 consecutive weeks

According to information from CoinShares, cryptocurrency investment products managed by large financial companies such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares have experienced a strong influx of capital, reaching up to 2.7 billion USD in the past week. This is a clear sign of the growing interest of investors in the global crypto market.

Impressive growth for 11 consecutive weeks

This week marks the eleventh consecutive week of net inflows into global crypto funds, totaling 16.9 billion USD. This growth has raised the total amount invested in crypto investment products this year to a new high of 17.8 billion USD to date, with a mid-year figure recorded at 18.3 billion USD. This is also equivalent to the amount that has flowed into crypto funds in the first half of 2024, when the Bitcoin ETF fund in the United States is officially launched.

James Butterfill, Head of Research at CoinShares, stated that this strong growth of investment inflows into cryptocurrencies is the result of many influencing factors, particularly the rise of geopolitical factors and the uncertainty in the monetary policy direction of major countries.

Source: CoinShares## Bitcoin still dominates the flow of money

The inflow of funds into Bitcoin investment funds remains dominant, accounting for 83% of the net inflow in the past week. Bitcoin funds have recorded an additional 2.2 billion USD for the third consecutive week. This is a sign of positive sentiment and strong confidence in Bitcoin, especially when the inflow into short-term Bitcoin investment funds only recorded a small amount, with 2.9 million USD in outflows, bringing the total outflows for the year to 12 million USD.

Data from The Block shows that spot Bitcoin ETF funds in the United States are a key factor, having attracted $2.2 billion in the past week. This further affirms the participation of American investors in the crypto market and the robust development of Bitcoin investment products.

Ethereum maintains interest

Not only Bitcoin, but Ethereum also saw a strong influx of funds into investment funds last week, with 429 million USD added, marking the tenth consecutive week of capital inflows. This is the longest streak of inflows since mid-2021, indicating sustainable interest in Ethereum. As of now, the total amount poured into Ethereum funds has reached 2.9 billion USD this year.

However, despite Ethereum's strong growth, U.S. spot Ethereum ETFs still do not dominate compared to Bitcoin, with only 283.5 million USD invested in Ethereum funds over the past week.

The United States leads, other countries are also ramping up investment

Overall, the United States leads in capital inflows into crypto market investment funds with $2.7 billion. Other countries such as Switzerland and Germany also recorded notable investments, reaching $23 million and $19.8 million, respectively. However, some countries like Canada, Brazil, and Hong Kong recorded outflows, with figures of $13.6 million, $2.4 million, and $2.3 million, respectively.

The strong growth of capital inflows into cryptocurrency funds indicates investors' confidence in the potential development of this market in the future. Despite the volatility in the market, macro factors such as monetary policy, geopolitical situation, and the development of new financial products like Bitcoin ETFs in the United States all play an important role in creating a favorable environment for the sustainable development of the crypto market.

Thus, with the increase in cash flow and advanced investment products, the crypto market has not only become an attractive investment channel but also opened up strong growth opportunities in the coming years.

Emma