Digital Asset Investment Products Surge 16% to $211 Billion

Digital asset investment products saw a remarkable surge in inflows, totaling $3.7 billion for the week. This substantial increase pushed the total assets under management (AuM) to a record high of $211 billion. The surge was primarily driven by Bitcoin and Ethereum, which led the way in attracting investments. This influx represents one of the strongest weeks in the sector’s history, underscoring the growing interest and confidence in digital assets among investors.

Bitcoin recorded $2.7 billion in weekly inflows, the highest among all digital assets. This increase raised Bitcoin’s total AuM to $179.5 billion, now matching 54% of the gold ETP market. This wave of inflows marks the 13th consecutive week of gains for crypto investment products. Market observers noted that the surge coincided with record activity on July 10, which posted the third-highest daily inflow ever. Exchange-traded product (ETP) volumes reached $29 billion for the week, doubling the 2024 average. Short Bitcoin products showed little change, indicating a largely bullish sentiment.

Ethereum also posted strong numbers, pulling in $990 million in its 12th straight week of inflows. This marks its fourth-largest weekly increase on record. Over the past three months, these flows accounted for nearly 20% of Ethereum’s total AuM. The report also highlighted that Ethereum’s proportional growth outpaced Bitcoin during the period. Analysts attributed this trend to favorable technical indicators, including a drop in exchange reserves and rising trading activity.

Regionally, the United States led with $3.7 billion in inflows. Meanwhile, Germany recorded outflows of $85.7 million, signaling local investor caution. Switzerland and Canada posted moderate inflows of $65.8 million and $17.1 million respectively. The data suggests that U.S.-based institutional investors remain the most aggressive buyers in the current market cycle. Regulatory clarity and ETF adoption are likely supporting this momentum. In contrast, European sentiment appears fragmented.

Other digital assets showed mixed performance. Solana attracted $92.6 million in inflows, reflecting growing investor interest beyond Bitcoin and Ethereum. XRP, however, experienced outflows of $104 million, the largest among tracked assets. According to insights from AlvaApp, the inflows suggest strong backing from institutional managers and ETF products. Reduced exchange supply and high volumes are reinforcing the bullish outlook. Yet, traders remain cautious of potential volatility due to overbought signals in the market.

The recent streak of inflows has lifted year-to-date net flows to $22.7 billion. Overall, the continued growth in both participation and capital signals a maturing market. The record-breaking inflows highlight the increasing acceptance and adoption of digital assets as a viable investment option. The combined strength of Bitcoin and Ethereum has been instrumental in driving the overall growth in digital asset investments. The $3.7 billion inflow is a testament to the resilience and potential of the digital asset market. Despite the volatility and regulatory challenges that the industry faces, investors remain optimistic about the long-term prospects of digital assets. The record AuM of $211 billion reflects the growing institutional interest in the sector, as more traditional financial institutions and investment firms allocate funds to digital assets.