Bitcoin investment funds took the lead, attracting close to $400 million in new investments.
In a dramatic turnaround, investments in digital assets surged last week, reversing a month-long trend of outflows. According to CoinShares International Ltd., digital asset products witnessed inflows amounting to a staggering $441 million by July 5th. This marked a stark contrast to the $39 million outflow reported just the week before.
Bitcoin, the leading cryptocurrency, spearheaded this resurgence with inflows nearing $400 million. This recovery follows a tumultuous period where Bitcoin products faced over $1.2 billion in losses across three weeks. Despite a brief dip to $54,000, its lowest since February, Bitcoin rallied, buoyed by significant investments into funds from industry giants like Fidelity and ProShares. However, Grayscale’s fund continued to struggle, losing approximately $90 million.
Solana-backed funds emerged as the surprise success story of the week, gaining over $16 million—a remarkable 900% increase from the previous week. This surge coincided with VanEck’s bid to launch a Solana-based ETF, though analysts caution that regulatory approval remains uncertain.
Meanwhile, Ethereum (Ether) funds saw modest inflows of about $10 million, with the Ether Strategy ETF leading the charge with $6 million. Despite this positive week, Ether products still show a net outflow for the year, totaling approximately $15 million.
The market responded positively to these developments, with Ether climbing 4% to around $3,000, and Bitcoin rising approximately 3% to $56,500 by Monday morning.
