Bitcoin ETP Inflows Slow 49% as Ethereum Gains Momentum

Bitcoin exchange-traded products (ETPs) saw a significant slowdown in inflows last week, attracting $790 million, which is a notable decrease from the previous three-week average of $1.5 billion. This moderation in inflows comes as global crypto ETPs continue to set new records, with total assets under management reaching $188 billion. The shift in investor sentiment is evident as Ethereum ETPs maintain strong momentum, with $225 million in inflows, marking their 11th consecutive week of positive net inflows.

According to the head of research at a prominent crypto analytics firm, the moderation in Bitcoin inflows reflects growing investor caution as the cryptocurrency nears its all-time high. Despite this slowdown, Bitcoin remains the primary driver of inflows, underscoring its continued appeal as a flagship digital asset within institutional portfolios. Ethereum ETPs, on the other hand, have shown sustained growth, with weekly inflows averaging 1.6% of assets under management during the 11-week period, doubling Bitcoin’s 0.8% average. This trend suggests growing confidence in Ethereum’s long-term value proposition, driven by its robust ecosystem and upcoming network upgrades.

Global crypto exchange-traded products collectively amassed $1.03 billion in inflows for the week ending July 4, pushing year-to-date inflows to nearly $19 billion—a new historical high. The total assets under management in crypto ETPs climbed to $188 billion, up from $184.4 billion the previous week. These figures reflect a broadening institutional acceptance and increasing capital allocation towards regulated crypto investment vehicles, which offer enhanced liquidity and transparency compared to direct asset holdings.

BlackRock’s crypto funds captured $436 million of last week’s inflows, representing 42% of the total inflows by issuers. This substantial share underscores BlackRock’s growing influence in the crypto asset management space and highlights investor preference for established financial institutions offering regulated crypto exposure. The firm’s strategic positioning may further catalyze mainstream adoption of crypto ETPs, especially as regulatory clarity improves globally.

Despite persistent volatility across major digital assets, including Bitcoin and Ether, investor appetite for crypto ETPs remains resilient. The inflow patterns suggest a nuanced market environment where investors balance optimism about long-term growth with caution near price peaks. This dynamic is reflected in the moderation of Bitcoin inflows alongside steady gains in Ethereum products, indicating diversified investment strategies within the crypto space.

The latest data reveals a maturing crypto investment landscape, where Bitcoin continues to lead inflows despite a recent slowdown, and Ethereum gains momentum as a favored alternative. With crypto ETP assets under management reaching unprecedented levels and major players like BlackRock driving significant inflows, the sector is poised for continued institutional growth. Investors should monitor these evolving trends closely, as they signal shifting preferences and increasing sophistication in crypto asset allocation.