- Bitcoin funds have recorded their fifth-largest week of inflows.
- Last week’s inflows appear to be linked to turning U.S. economic tides.
- Beyond Bitcoin, Ethereum also recorded significant flows last week.
“Buy the dip” is a popular crypto mantra. Like Baron Rothschild’s famous quote about buying “when there’s blood in the streets,” the mantra encourages investors to add to their holdings during asset price corrections and times of fear in anticipation that prices will eventually rebound to yield a profit.
In the week before last, crypto funds inflow data suggested that institutional crypto investors had embraced this mantra, adding to their exposure despite market jitters from Germany’s Bitcoin dump. According to CoinShares, these investors continued this trend last week, piling billions into global Bitcoin ETFs at a record pace despite Germany’s continued sell-off .
Bitcoin ETFs Rake in Over $1.35B
Institutional investors were adding to their Bitcoin exposure, while Germany’s selling spree had left many fearing the worst. Per CoinShares’ most recent weekly crypto fund flows report released on Monday, July 15, institutional investors poured in $1.35 billion into Bitcoin ETFs in the past week—the fifth most significant weekly inflows these funds have ever recorded.
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Explaining the significantly high positive sentiment despite concerns around the Germany-led Bitcoin sell-off, CoinShares suggested that investors likely found the resulting dip, which sent the asset to two-month lows below $55,000, attractive.
At the same time, the asset manager also noted that investors were likely encouraged by June’s lower-than-expected Consumer Price Inflation (CPI) numbers released last week . This sentiment comes as lower inflation numbers are typically positive for perceived risk assets like Bitcoin. The Fed is more likely to consider interest rate cuts with lower inflation numbers, leading to more borrowing for investments like crypto.
Meanwhile, Bitcoin ETFs were not the only crypto-linked funds that saw sizable inflows in the past week. Altcoins also saw inflows, bringing the total crypto fund inflows for the week to $1.44 billion, bringing the record haul of year-to-date (YTD) inflows to $17.8 billion. For context, the second largest YTD inflows to crypto funds were $10.6 billion in 2021.
Ethereum Stands Out as Altcoins Also Record Inflows
Per CoinShares’ most recent report, Ethereum ETFs raked in the most significant inflows amongst altcoins in the past week with $72 million.
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As highlighted by the asset manager, last week’s inflows are the largest Ethereum has seen since March 2024 and are likely driven by anticipation of the launch of spot ether ETFs in the U.S. Analysts have expressed the view that pending ether ETF registration statements are likely to get the SEC’s greenlight this week, citing a lack of reasons for further delays.
Beyond Ethereum, Solana , Avalanche , and Chainlink -linked funds saw inflows of $4.4 million, $2 million, and $1.3 million, respectively.
On the Flipside
- While Germany appears to have finished selling, fears over the market impact of Mt. Gox’s planned Bitcoin redistribution remain.
- Despite June’s lower inflation data, it is unclear when the Fed will consider cutting rates.
Why This Matters
Inflows to crypto funds offer insight into institutional investor sentiment around the market. Last week’s inflows further highlight the confidence of this class of investors in the crypto market’s ability to bounce back stronger despite fears of a sell-off.
Read this for more on recent crypto fund flows:
Crypto Funds Record $441M Inflows as Investors Buy the Dip
See the latest insights from analysts on the imminent ether ETF launch:
Ether ETF Highly Likely to Debut This Week: Latest from Analysts
