TL;DR
- Ethereum ETFs Attract Record Inflows: The recent launch of spot-based Ether exchange-traded funds (ETFs) has led to substantial inflows, making it one of the largest asset inflows since December 2022.
- Bitcoin Continues to Shine: Alongside Ether, Bitcoin remains a strong investment choice. Over the past month, Bitcoin attracted $3.6 billion in inflows, contributing to a year-to-date (YTD) total of $19 billion—a historical high.
- Market Trends and Digital Asset Growth: The digital asset market continues to expand, with total assets under management reaching $99.1 billion. In 2024 alone, inflows shattered records, surpassing $20.5 billion YTD.
The launch of spot Ethereum ETFs has sparked significant interest, resulting in one of the largest inflows to the asset class since December 2022. According to the latest CoinShares report, newly issued Ethereum ETFs have accumulated an impressive $2.2 billion in inflows, accompanied by a remarkable 542% surge in ETH exchange-traded products (ETPs).
However, this milestone was tempered by $285 million in overall net outflows from incumbent funds, specifically from Grayscale’s $1.5 billion incumbent trust.
Bitcoin (BTC) Continues to Attract Investment
In parallel with Ether developments, Bitcoin has maintained its appeal, attracting $3.6 billion in inflows over the past month. This substantial investment contributes to a year-to-date (YTD) total of $19 billion, marking a historical high.
CoinShares analysts attribute this surge to several factors. First, speculation surrounding the upcoming United States elections has driven interest in BTC. Additionally, there is growing anticipation that Bitcoin could serve as a strategic reserve.
Renewed investor confidence, fueled by expectations of a Federal Reserve rate cut in September, further supports BTC inflows.
Market Trends and Digital Asset Growth
The digital asset market continues to expand, with total assets under management reaching an impressive $99.1 billion. In 2024 alone, total inflows have shattered records, surpassing $20.5 billion YTD.
Notably, trading volumes across all digital assets hit an all-time high in May, driven by anticipation of Ethereum ETF launches. Last week, the market witnessed a staggering $14.8 billion inflows, largely fueled by the Ethereum ETFs.
Grayscale’s Ethereum ETFs Outflow
Despite this surge, other digital asset investment products saw only $245 million in inflows during the same period. On July 26, Grayscale Ethereum Trust ETF (ETHE) experienced significant outflows, totaling over $1.5 billion.
Net outflows reached $356 million in a single day. Investors withdrew substantial amounts from the newly converted Ethereum Trust ETF following the launch of spot Ethereum ETFs in the US on July 23. In contrast, Grayscale’s Ethereum Mini Trust ETH (ETH) performed well, recording a net inflow of $44.9 million on July 26.
The crypto market remains dynamic, with Bitcoin and Ether capturing investor attention. As ETFs gain traction, the landscape continues to evolve, shaping the future of digital asset investment.
