Despite the ongoing bear market, capital inflows into cryptocurrency investment products continue to rise. The influx of capital into the market may mean that investors still support cryptocurrencies.
According to data published by CoinShares (via Finbold) on August 1, crypto investment products recorded the fifth straight week of capital inflow at $81 million. Over the past five weeks, they have recorded a combined inflow of $0.53 billion, with $474 million of capital raised in July alone.
The influx was partly responsible for the cryptocurrency market regaining a $1 trillion capitalization, with Bitcoin playing a major role here. According to the data, in the last week of July, Bitcoin (BTC) had inflows totaling $85 million, while short-Bitcoin had outflows totaling $2.6 million.
Ethereum (ETH) came in second with $8.2 million in inflows, followed by multi-assets with $2.8 million. Elsewhere, Solana also recorded a $1.5 million inflow in the last week of July, matching a year-to-date inflow of $114 million.
The United States recorded $23 million in assets under management with the last week of July recording $14.5 million in inflows. However, Canada registered the highest weekly inflows at $67 million.
It is worth noting that after a long correction in 2022, the cryptocurrency market in July mainly traded in the green zone, led by Bitcoin and Ethereum. Bitcoin continues to break the $20,000 mark after a slight correction below the level in June. Ethereum also seems to be gaining momentum after the network issued an update on the Merge upgrade that will transition the blockchain from Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism.
© 2022, Eva Fox | Tesmanian. All rights reserved.
We appreciate your readership! Please share your thoughts in the comment section below.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.