Surge in Global Digital Asset Industry Sees Record Inflows
Last week, the global digital asset industry witnessed an unprecedented surge in inflows, with over US$1.4 billion pouring into the market. This surge was largely driven by Bitcoin, which experienced its fifth-highest weekly inflows to date.
Notable Inflows and Trends
British asset management company Coinshares reported a net inflow of approximately US$1.44 billion into global cryptocurrency investment products in the second week of July. This marked a significant increase compared to previous weeks, bringing the total inflow for the year to US$17.8 billion, surpassing the inflow during the last bull market in 2021.
Bitcoin dominated the inflows, with $1.355 billion entering the market, making it the fifth largest weekly inflow ever. Interestingly, there was also a notable increase in inflows into “Bitcoin short” products, signaling a growing interest in betting on Bitcoin’s decline.
Rise of Ethereum and Other Altcoins
Aside from Bitcoin, Ethereum also saw a significant inflow of $72 million, the highest level since March. This followed a period where Solana had outperformed Ethereum in terms of inflows.
Experts believe that Ethereum’s resurgence in inflows can be attributed to the anticipation of approval for an Ethereum spot exchange-traded fund by the U.S. Securities and Exchange Commission. Other altcoins such as Solana, Avalanche, and Chainlink also saw net inflows due to the Ethereum boom.
Market Dynamics and Regional Insights
Despite the price increase of Bitcoin by approximately 5.0% over the past week, it was noted that the rise was not driven by trading volume, which was below the yearly average. The United States led the inflows with US$1.3 billion, with significant contributions also coming from Switzerland, Hong Kong, and Canada.
Looking ahead, the recent influx of capital into cryptocurrencies is expected to continue driving prices up. Bitcoin briefly crossed the $63,000 mark on the 15th and remained steady around $62,800 by the end of the day.
