US Crypto ETFs Post $12.8B Record Inflows in July
US crypto ETFs posted record inflows of $12.8 billion in July, averaging $600 million per day. These crypto ETFs outperformed all ETF categories, including Vanguard’s S&P 500 fund (VOO). Bitcoin and Ethereum spot ETFs contributed equally to the surge. Bitcoin ETFs reached $146.5 billion in assets under management (AUM), led by BlackRock’s IBIT ($84 billion) and Fidelity’s FBTC ($23 billion). Ethereum spot ETFs gathered $20.1 billion AUM, led by BlackRock’s ETHA ($10.7 billion). IBIT drew 75% first-time BlackRock clients, with 27% also buying other iShares ETFs. Launched in January 2024, IBIT offers direct 1:1 Bitcoin holdings. ETF demand has driven Bitcoin’s price up nearly 300% since BlackRock’s application; Bitcoin now trades near $113,800. Despite a 5% drop in total crypto market cap over the past 24 hours—driven by losses in BTC, ETH, and SOL—record ETF inflows underscore strong demand for regulated crypto exposure. This trend signals a potential bullish outlook, boosting institutional adoption and market liquidity.
Bullish
Record inflows into crypto ETFs reflect strong investor demand for regulated digital asset exposure. In the short term, heightened ETF activity can boost trading volumes and support price rallies as new capital enters Bitcoin and Ethereum markets. In the long term, sustained institutional adoption and growing AUM in spot ETFs contribute to greater market liquidity and legitimacy. Historical patterns show that ETF launches often precede price upticks and reduced volatility, suggesting continued upward pressure on cryptocurrency values. Therefore, the data points to a bullish outlook for Bitcoin and broader crypto markets.