$2.7B Surge Puts It Neck-and-Neck With Gold ETPs

Digital asset investment vehicles drew in $3.7 billion last week, and represented the second-highest weekly inflow on record. July 10th registered the third-largest single-day inflow ever. This marks the 13th week in a row of inflows, raising the cumulative total to $21.8 billion, with year-to-date inflows hitting $22.7 billion.

Assets under management surpassed the $200 billion milestone for the first time, reaching a record $211 billion. ETP trading volumes also surged to $29 billion, doubling the year’s typical weekly average.

Investors Pour Billions into Bitcoin and Ethereum

In the latest edition of the ‘Digital Asset Fund Flows Weekly Report,’ CoinShares revealed Bitcoin investment products recorded $2.7 billion in inflows last week, which pushed the total assets under management (AuM) to $179.5 billion. Interestingly, this means Bitcoin now represents 54% of the AuM held in gold ETPs for the first time. Short Bitcoin ETPs remained quiet with minor inflows of $0.4 million.

Ethereum extended its streak with a 12th consecutive week of inflows as it amassed $990 million, its fourth-largest on record. In relative terms, Ethereum’s inflows over 12 weeks equate to 19.5% of its AuM, thereby outperforming Bitcoin’s 9.8%. Solana followed with a strong $92.6 million in inflows, while Sui attracted $3.5 million.

During the same period, multi-asset investment products saw $1.1 million in new capital, and Cardano pulled in $0.5 million. On the other hand, XRP led outflows with $104 million, while Chainlink noted $0.5 million in outflows.

Regional flows showed the United States in a clear lead with $3.7 billion in inflows, while Switzerland and Canada posted $65.8 million and $17.1 million, respectively. Australia’s inflows stood at $1 million. Germany recorded the week’s largest outflows with $85.7 million. Sweden and Brazil followed with $15.7 million and $7.5 million in outflows.

These strong inflows into digital assets have coincided with Bitcoin’s breakout.

No Signs of Fatigue?

According to QCP Capital, Bitcoin’s rally above $122,000 shows no signs of slowing. In an update, the firm noted that the market underestimated the strength of this parabolic breakout. A decisive technical move and rising institutional demand are driving the surge.

To top that, the Crypto Fear & Greed Index jumped from 40 to 70 in three weeks. This signals a clear transition from fear to greed among investors. Spot Bitcoin ETFs saw over $2 billion in net inflows last week, which is indicative of a growing institutional participation in the rally.

Perpetual funding rates are also nearing 30% as leveraged long positions build while total open interest has crossed $43 billion, levels last seen in January. Despite the rally, implied volatility has not spiked as it usually does. Front-end implied vols rose but remain below last year’s average levels. One-month risk reversals are also flat, which points to little demand for immediate upside.

However, September and December risk reversals show strong bids for calls, meaning investors are hedging long-term upside while managing near-term caution. Elevated funding rates also call for careful positioning amid market euphoria. QCP said that it remains structurally bullish on Bitcoin with macro and institutional support. However, it prefers positioning on a pullback rather than chasing the current rally.