Last week saw a massive $2.7 billion poured into crypto investment products – that’s eleven weeks in a row! This brings the total for the year to a whopping $16.9 billion.
Where’s the Money Coming From?
The US is leading the charge, contributing a massive $2.65 billion. Smaller amounts came from Switzerland and Germany. Interestingly, Hong Kong, which saw big inflows earlier, actually saw $132 million leave
in June.
Bitcoin Still Reigns Supreme
Bitcoin is the star of the show, attracting $2.2 billion (that’s 83% of the total!). While there were some small outflows from short-Bitcoin products ($2.9 million), the overall trend is overwhelmingly positive for Bitcoin. This shows investors are betting big on Bitcoin’s future.
CoinShares’ research head, James Butterfill, points out that this year’s performance mirrors 2024’s strong start, suggesting a similar trend might continue. He thinks the uncertainty around interest rates and the global economy is pushing investors towards crypto as a safer bet.
Ethereum’s Steady Climb, Solana Lags Behind
Ethereum also saw significant inflows, with $429 million added last week. Year-to-date, it’s raked in $2.9 billion, making it the second most popular crypto among institutional investors. This growth is likely linked to the increasing popularity of Layer 2 networks.
Solana, however, is lagging behind, with only $91 million in inflows this year. While it’s gaining traction in DeFi and NFTs, it doesn’t seem to be attracting the same level of institutional investment as Ethereum. This highlights that institutional investors still prefer more established cryptocurrencies.