The past few weeks have been marked by a major buzz around crypto ETFs after BlackRock applied for a so-called spot ETF for bitcoin (BTC). This led investors to flock exchange traded funds (ETFs) to have safe exposure to crypto. According to CoinShares, this can still be measured, many of these exchange funds also grew significantly last week.
Bitcoin and crypto ETFs have grown significantly
That writes ETF issuer CoinShares in a weekly research report. The months of July and August are generally characterized by a remarkably low trading volume, according to CoinShares. Yet many of the ETFs measured were not affected by this. Last week, these ETFs grew by $136 million.
After a period of nine weeks on outflows we’ve seen the funds grow again over the past three weeks, by $470 million to be exact. This has completely canceled out the capital flight of the previous nine weeks. In the first of these three weeks, these funds even saw the fastest growth since 2022.
🔎 Let’s have a look at last week’s fund flows with CoinShares Head of Research James Butterfill:
Digital asset investment products saw US$136m of inflows last week.
— CoinShares (@CoinSharesCo) July 10, 2023
Bitcoin alone popular through regulation?
As almost always, the lion’s share ended up with bitcoin, with a total of $ 133 million in new capital. Funds that are short on bitcoin actually shrank $1.8 million.
For the altcoin ETFs, the money inflow was almost non-existent. Ethereum (ETH) funds grew by just $2.9 million, and the next largest inflows were for solana (SOL). Cardano (ADA) funds saw $1.3 million leave, which may be because the cardano price fell last week.
It is possible that the lack of interest in altcoins has to do with the policy of the US Securities and Exchange Commission (SEC). According to the policymaker, no less than 61 altcoins are unregistered securities, while bitcoin is the only one that has clarity regarding regulation.
Since then, many altcoins have fallen sharply, while bitcoin in particular has remained very strong. The price even briefly reached its highest point in 13 months last week.