Traditional investors continue to bet big on crypto despite recent market drawdown

CoinShares’ report on Monday showed that crypto ETFs experienced over $1.44 billion in net inflows last week as most traditional investors saw the market drawdown as a potential buy-the-dip opportunity.

Crypto investment products record $1.44 billion in inflows

Digital asset investment products witnessed increased buying pressure in the past week as inflows across crypto ETFs reached $1.44 billion. Most traditional investors pounced on the recent dip in the market to increase their crypto holdings.

The increased buying pressure pushed crypto ETFs year-to-date (YTD) inflows to a whopping $17.8 billion, exceeding inflows of the 2021 cycle by 67% in approximately six months.

US crypto ETFs dominated the international market, with $1.3 billion inflows in the past week. iShares US ETFs, alongside Fidelity ETFs, were major gainers in the week, bringing in inflows of $523 million and $358 million, respectively. Grayscale ETFs bled $34 million as the asset manager struggled to maintain its crypto holdings.

However, several off-shore digital assets ETFs experienced inflows, notably Hong Kong with $54.6 million, Switzerland with $57.5 million, Canada with $24.2 million and Germany with $11.7 million.

Bitcoin recorded its fifth-highest weekly inflow, dominating the global crypto investment market with $1.35 billion. Meanwhile, short-bitcoin recorded outflows of $8.6 million, its highest since April. This indicates the increased bullish sentiment from crypto ETF investors.

CoinShares analysts suggest that price weakness from the German government's Bitcoin sale, along with lower-than-expected June CPI data in the United States, may have played a major role in the hike in inflows.

Weekly Crypto Asset Flows

Meanwhile, Ethereum-based ETFs led the general altcoin market with $72 million in inflows, its highest since March. The surge may be due to the highly anticipated ETH ETF approval by the Securities & Exchange Commission (SEC).

Other altcoins, including Solana, Chainlink and Avalanche, saw inflows of $4.4 million, $1.3 million, and $2 million, respectively.