Investments in digital assets experienced a landmark week, reaching an unprecedented $4.39 billion in new capital. According to a recent report by CoinShares, this surge was fueled by increased investor enthusiasm for Bitcoin and Ethereum exchange-traded funds (ETFs).
The past high of $4.27 billion, recorded following the US presidential elections in December 2024, was surpassed. This also marks the 14th straight week of positive investment flow into cryptocurrency products, boosting the year-to-date total to an impressive $27 billion.
This record-setting week coincided with favorable developments in US crypto policy. Lawmakers progressed with key legislative measures. These included the CLARITY Act, the Anti-CBDC Surveillance Act, and the GENIUS Act, the latter of which was signed into law by President Donald Trump on July 18.
CoinShares observed a corresponding surge in market activity. Global trading volumes for crypto exchange-traded products (ETPs) reached a new high of $39.2 billion, with Bitcoin and Ethereum accounting for a significant portion of the activity.
The combination of strong inflows and elevated trading volumes pushed the total assets under management (AUM) to an all-time peak of $220 billion.
Ethereum Tightens the Gap with Bitcoin
Bitcoin-related products attracted $2.2 billion in inflows for the week, a slight decrease from the $2.7 billion seen in the prior week.
However, activity levels remained high. According to CoinShares, Bitcoin ETPs represented 55% of all Bitcoin exchange volume, highlighting the expanding role of institutional products.
Interestingly, short Bitcoin funds also saw inflows of $10 million. This suggests growing caution in the market as Bitcoin approached a new all-time high, exceeding $123,000.
On a related note, Ethereum products maintained their upward trajectory.
CoinShares data indicates that funds focused on ETH attracted $2.12 billion in new investments, nearly doubling the previous record of $1.2 billion.
This latest inflow marks the 13th consecutive week of inflows for Ethereum, now representing 23% of its total AUM. Notably, year-to-date inflows for Ethereum funds have already surpassed the total for all of 2024, which amounted to $6.2 billion.
Beyond Bitcoin and Ethereum, other prominent altcoins also experienced increased investor interest during the market rally. Solana funds attracted $39 million in inflows, while XRP and Sui saw inflows of $36 million and $9.3 million, respectively.
This widespread increase in inflows reflects the overall positive sentiment in the cryptocurrency market and the rising institutional interest in this evolving asset class.