Digital asset management firm CoinShares reported that over $1 billion in capital made its way into crypto investment products over the past week, marking the 12th consecutive week of net inflows. This signals strong confidence for digital assets even as traditional markets are experiencing a recoil from renewed trade tensions sparked by U.S. President Donald Trump, who stated that the tariffs on imported goods will be “due and payable” starting August 1.
Countries are levied based on their trade deficit with the United States, with some nations, such as the European Union (EU) members, charged as high as 50%. Trump also warned that any nation that aligns itself with the BRICS bloc will be charged an additional 10% tariff.
The rhetoric dragged the US equities futures to the red, pushed London copper futures down, and sent the Asian equities market to a low for the fourth day running.
Crypto Market Remains Elevated as Weekly Inflow Into BTC, ETH, SOL, XRP, and SUI Funds Increases
Despite the volatility, the crypto market remained largely unfazed, suggesting that investors are either ignoring the macro noise or viewing Bitcoin and other cryptocurrencies as increasingly insulated from global monetary policy risk. This confidence was also reflected in the performance of crypto-backed exchange-traded products (ETFs), which have seen continued inflows.
In a research blog published on Monday, CoinShares analyst James Butterfill noted that digital asset investment products have had their 12th consecutive week of inflows, totalling $18 billion after the funds brought in $1.04 billion between June 30 and July 4. Price gains experienced by leading cryptocurrencies over the past seven days have pushed the total assets under management (AUM) of these ETFs to a new all-time high of $188 billion. Meanwhile, trading volumes reached $16.3 billion, keeping in line with the weekly average so far this year.
Bitcoin-backed products saw the most inflows, attracting $790 million last week, but this was a slowdown from the previous three weeks, which averaged $1.5 billion. Butterfill suggested that the moderate inflow could be investors becoming more cautious as BTC edged closer to its all-time high price level of $111,970 from May.
US spot Bitcoin ETFs suffered a brief setback on July 1 when $342.2 million exited the market, but quickly made up for the loss with over $1 billion in inflows across July 2 and 3. On a year-to-date basis, the funds have now attracted $14.5 billion in net inflows and an AUM of nearly $128 billion, led by BlackRock’s $81.4 billion iShares Bitcoin Trust (IBIT) and Fidelity Investments’ $22.38 billion Fidelity Wise Origin Bitcoin Fund (FBTC).
Since their launch in January 2024, Bitcoin ETFs have recorded more than $1 trillion in cumulative trading volume. This highlights their role in drawing institutional and retail investors into BTC exposure through regulated vehicles and continued influence on the apex crypto’s market rate.
Ether-backed products brought in $226 million over the past week, continuing their impressive inflow run for an 11th straight week. The average weekly inflow for spot Ethereum ETFs represented 1.6% of its AUM, which is significantly higher than Bitcoin’s 0.8%, highlighting a favorable shift in investor sentiment for the second-largest cryptocurrency by market cap. Year-to-date figures for the funds have risen to $3.1 billion.
Investor appetite extended beyond the two largest crypto assets, with Solana (SOL) recording $21.06 million in inflows, followed by XRP with $10.58 million, and Sui (SUI) at $1.6 million. Despite their smaller volume compared to BTC and ETH, these inflows indicate growing interest in alternative cryptocurrencies.
Dual Crypto-Tracking ETFs Suffer Outflows as Investors Focus on Single Asset Exposure
In contrast, some funds experienced net redemptions, predominantly the ones tracking multiple crypto assets, which saw outflows of $12.4 million during the week and $10.7 million month-to-date. This indicates that investors are shifting focus away from diversified funds and into targeted asset exposure.
Crypto ETF issuer Grayscale’s funds reported $46 million in weekly outflows and $1.69 billion year-to-date. Despite the considerable outflow, the company holds over $30 billion worth of crypto assets in AUM. The CoinShares XBT Provider AB ETF also registered outflows of $19.07 million for the week, pushing its year-to-date outflow total to $288 million.
Experts Warn that Long-Term BTC Holders are Waiting for a Downturn to Take Profit
In a Telegram message, HashKey Capital director Han Xu said that the slight drop in Bitcoin’s price following Trump’s tariff announcement showcased its resilient nature and long-term investor confidence in the asset. He is optimistic that this trend will continue amid volatility in the short term.
On-chain activity and price volatility for Bitcoin have dropped to their lowest level since 2023. While BTC continues to push towards $110,000, falling trading volumes and rising concentration of unrealized gains among long-term holders could trigger a sharper move if sentiment flips, with Glassnode analysts calling it a “summer lull”.
FxPro’s Alex Kuptsikevich wanted that even though the market is still bullish, capital continues to move away from the 200-day moving average. Hence, any tone shift could lead to quick profit-taking and a subsequent downtrend.
