Investment funds tracking Bitcoin and Ethereum have set a new record, drawing in a massive $11.2 billion in July. This marks the highest monthly inflow ever for these cryptocurrency exchange-traded funds (ETFs). The final count for the month will be confirmed on Thursday.
Ethereum ETFs are particularly standing out. Last week alone, these funds pulled in $1.6 billion in new cash. So far this year, Ethereum ETFs have attracted $7.8 billion, which is more than their total for all of 2024. Experts note that Ethereum, being a smaller asset than Bitcoin, needs less money to show big gains, which helps explain its strong performance.
In contrast, Bitcoin ETFs saw a slight dip last week, with $175 million leaving the funds. This trend raises questions about whether the market is entering an “altcoin season,” a time when other cryptocurrencies besides Bitcoin gain significant value.
Solana and XRP funds saw strong inflows, bringing in $311 million and $189 million respectively. However, interest in other smaller cryptocurrencies quickly faded.
These inflows into other cryptocurrencies might be driven by hopes for new U.S. ETF launches for these assets. Yet, the U.S. financial regulator, the SEC, recently stopped plans for new crypto index ETFs, showing some hesitation towards broader cryptocurrency products.
Despite the shifts, both Ethereum and Bitcoin are performing well. Ethereum trades at $3,885, up 1.9% in the past 24 hours. Bitcoin is near $119,000, having gained 0.7% in the same period.
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