Bitcoin, Ethereum lead $17.8B crypto institutional investment

Institutional investment in digital assets has reached an unprecedented $17.8 billion year-to-date, with Bitcoin and Ethereum leading the charge.

This milestone suggests a potential recovery for the broader crypto market.

A Strong Week for Crypto Investments

This surge follows a particularly strong week for crypto asset investment products, which saw over $1.44 billion in inflows. Bitcoin alone attracted more than $310 million on July 12.

Record-Breaking Year for Crypto Inflows

Data from CoinShares reveals that the year-to-date inflow for all crypto assets has now surpassed the previous record of $10.6 billion set in 2021. The biggest share of these inflows came from U.S. buyers, with significant contributions also from investors based in Switzerland.

“Regionally, the U.S. led with $1.3 billion for the week, although positive sentiment was seen across all other countries, most notably Switzerland (a record this year for inflows), Hong Kong, and Canada with $58 million, $55 million, and $24 million respectively,” the CoinShares report stated.

Bitcoin ETF Inflows Surge

Bitcoin ETFs experienced their fifth-largest week of institutional inflows, pulling in over $1.35 billion, including a substantial $310 million on July 12 alone. This influx of funds helped push Bitcoin’s price above $60,000, reaching $63,000 at the time of reporting.

Factors Driving Bitcoin Inflows

CoinShares suggests that last week’s robust buying activity around Bitcoin was influenced by a price dip following the German government’s sale of 50,000 BTC. This lower price point encouraged investors to bolster their Bitcoin holdings.

“We believe price weakness due to the German Government bitcoin sales and a turnaround in sentiment due to lower than expected CPI in the U.S. prompted investors to add to positions,” CoinShares noted.

Ethereum Sees Significant Inflows

Ethereum also saw significant inflows, with $72.1 million last week, driven by excitement over the imminent launch of the first-ever spot Ethereum Exchange Traded Funds (ETFs) in the United States. Final comments from the Securities and Exchange Commission on these ETFs are expected early this week.

Upcoming Ethereum ETFs

Eight financial institutions, including Blackrock and Fidelity, are set to issue the upcoming Ethereum ETFs. Other altcoins also benefited from increased investment, with Solana, Avalanche, and Chainlink attracting $4.4 million, $2 million, and $1.3 million, respectively.

Growing Confidence in Digital Assets

This substantial institutional interest underscores the growing confidence in digital assets and their potential to reshape the financial landscape. As digital assets continue to gain mainstream acceptance, the record-setting inflows of 2024 highlight the increasing role of institutional investors in driving the market forward.