Crypto ETFs Achieve Record $12.8B Inflows in July
The US crypto exchange-traded funds (ETFs) market experienced a landmark month in July, achieving unprecedented inflows that signal robust institutional interest.
Crypto ETFs Outperform Traditional Funds
US crypto ETFs saw $12.8 billion in inflows during July, marking the category's best month ever. The average daily inflow was approximately $600 million, doubling the typical rate.
“US Crypto ETFs took in $12.8 billion in July, the best month ever, a $600m/day pace, about double avg. As a group that’s more than any single ETF did, incl the Mighty VOO,” - Eric Balchunas, Bloomberg ETF Analyst.
This performance surpasses even the Vanguard S&P 500 ETF (VOO), indicating a significant shift in investor behavior and increasing confidence in crypto assets.
Broad-Based Inflows
The inflows were distributed across the crypto ETF spectrum, with nearly every ETF, excluding converted trusts, experiencing net positive inflows. Both Bitcoin and Ethereum ETFs contributed equally, highlighting growing interest in Ethereum alongside Bitcoin.
“This is the most all-around dominant performance since the Eagles ended the Chiefs in the Super Bowl. Will be hard to top,” - Eric Balchunas, Bloomberg ETF Analyst.
Broader Market Trends
The risk appetite isn't confined to crypto ETFs. ARK Invest’s flagship fund, ARKK, saw a massive $800 million inflow in a single session, marking its largest one-day inflow ever. This surge is likely due to the fund's 50% return over the past three months, outperforming major indices and even BlackRock’s IBIT.
“…$ARKK just took in $800 million in one day—It’s biggest one day inflow ever… $ARKW also saw $150m (huge for it), so whole fam did about a billion,” - Eric Balchunas, Bloomberg ETF Analyst.
The resurgence of capital into risk-on assets like Bitcoin ETFs and crypto products paints a compelling picture of current market sentiment, suggesting optimism and conviction among investors.
Matt Hougan, CIO of Bitwise, anticipates a strong second half for Ethereum ETFs.
Market Sentiment
After a cautious spring, traders and institutions are re-entering the market, driven by the normalization of crypto exposure in traditional portfolios.
Key Takeaways
- Record Inflows: Crypto ETFs saw $12.8 billion in inflows in July.
- Broad Participation: Inflows spanned across Bitcoin and Ethereum ETFs.
- Risk-On Appetite: Increased investment in risk-on assets signals market optimism.
Today's Crypto News Snapshot
- El Salvador expands Bitcoin holdings amid Bukele's extended presidency.
- US Congressman raises concerns over tokenized stocks blurring lines between public and private companies.
- Bitcoin's potential rise to $150,000 depends on a critical bullish pattern.
- AguilaTrades faces $40 million liquidation due to a failed Bitcoin bet.
- Over $7 billion in Bitcoin and Ethereum options contracts expired.
- Analysts suggest Bitcoin's peak may occur by September based on global M2 supply data.
- MicroStrategy reports $10 billion net income in Q2, driven by Bitcoin gains.
- SOL and SUI lead August's $3 billion token unlocks.
- XLM's price pattern indicates a potentially challenging August.
- Crypto hacks surged in July, with $142 million stolen, a 27% increase from June.
Crypto Equities Pre-Market Overview
| Company | At the Close of July 31 | Pre-Market Overview |
|---|---|---|
| Strategy (MSTR) | $401.86 | $393.59 (-2.06%) |
| Coinbase Global (COIN) | $377.76 | $337.90 (-10.55%) |
| Galaxy Digital Holdings (GLXY) | $28.42 | $26.65 (-6.21%) |
| MARA Holdings (MARA) | $16.08 | $15.21 (-5.41%) |
| Riot Platforms (RIOT) | $13.41 | $12.28 (-8.43%) |
| Core Scientific (CORZ) | $13.54 | $13.16 (-2.81%) |