In brief
- Bitcoin and Ethereum ETFs pulled in $3.7 billion last week, marking the second-highest weekly flow on record.
- Bitcoin flies to new all-time highs, topping $121,000 as institutions pile into ETFs, pushing total crypto fund assets to $211 billion.
- Bitcoin soars while Ethereum lags: Bitcoin surged above $121,000 with 15.9% monthly gains, while Ethereum traded above $3,000 but remains 4.6% lower year-over-year despite recent strength.
Bitcoin and Ethereum ETFs picked up record-breaking momentum last week, pushing total assets under management in crypto-linked funds to $211 billion, according to crypto asset manager CoinShares.
That's all down to the Bitcoin and Ethereum funds last week pulling in $3.7 billion, the second-highest weekly flow on record. And Thursday, July 10th, was one of the highest ever daily inflows for Bitcoin ETFs.
U.S. investors were particularly active last week, noted CoinShares Head of Research James Butterfill.
"Regionally, the U.S. dominated with $3.7 billionn in inflows," he wrote. "Germany, by contrast, recorded outflows of $85.7 million, while Switzerland and Canada posted inflows of $65.8 million and $17.1 million, respectively."
At the time of writing, Bitcoin's price is holding above $121,000 after gaining 2.7% in the past day, according to CoinGecko data. That's a 15.9% gain in the past month and more than double what the BTC price was this time last summer.
Meanwhile, Ethereum has stayed above $3,000 and managed to pick up 2% in the past day. But the year to year comparison tells a very different story compared to Bitcoin. ETH is still trading 4.6% lower than it was this time last year. Keep in mind, July 2024 is when Ethereum spot ETFs began trading in the U.S.—and the anticipation gave ETH a big boost.
Bitfinex analysts told Decrypt it was especially notable that last week's ETF flows absorbed almost all of BTC selling pressure.
"Importantly, open interest is climbing alongside price while funding remains balanced, showing this rally is built on spot-driven conviction, not excess leverage," they said.
"This isn’t a speculative surge, the consistency and timing suggested it’s a structural bid," the analysts added. "ETF flows this strong typically mark new baselines for price."
Valentin Founirer, lead research analyst at BRN, cautioned that it's still possible the current bullish sentiment could quickly evaporate.
"This ongoing wave of institutional inflows confirms the strong momentum behind the rally," he wrote in a note shared with Decrypt. "But history shows momentum can quickly reverse once buying pressure weakens—making risk management essential in the days ahead."
Even as momentum remains strong, Fournier flagged that the market is approaching levels where profit-taking and momentum exhaustion could emerge.
"We maintain an elevated exposure while monitoring for signs of inflow fatigue," he wrote. "We're prepared to scale back quickly if institutional activity slows."