CoinShares recently observed that crypto investors have injected $3.2 billion into digital asset investment products over the past three weeks, indicating a bullish sentiment. During this period, investors continued a streak of positive flows, deploying $1.35 billion last week alone. A significant portion of this capital streamed into ETFs, leading to a 45% increase in week-on-week volume for crypto-backed funds.

Bitcoin (BTC) products, especially in the U.S., led the charge by attracting $1.24 billion between July 15 and July 19. Spot Bitcoin ETFs on Wall Street saw net inflows for 11 consecutive days prior to last week’s surge. Products from issuers such as BlackRock and Grayscale currently hold over $60 billion in assets and have accumulated $17 billion in net inflows since January, according to data provider SoSoValue.

Ethereum (ETH) has also gained favor among crypto investors. Last week, ETH products received a $45 million influx, bringing the year-to-date (YTD) total to $103 million, surpassing Solana (SOL), which has garnered $71 million YTD. This increased demand for Ethereum-based products comes as both investors and issuers anticipate the U.S. Securities and Exchange Commission’s approval of spot ETH ETFs this week. Ahead of this, the NYSE Arca has already certified its acceptance to list and trade spot Ethereum ETF shares from Bitwise and Grayscale.

Ethereum is seen as the next cryptocurrency to be included in institutional ETF wrappers following Bitcoin, a development expected to open the door for more digital asset ETFs. Issuers like VanEck have already filed for a spot Solana ETF. So far, the SOL ETF bids have not included staking language, similar to how staking was excluded from spot Ether ETF applications. However, SEC commissioner Hester Peirce mentioned that the agency might consider allowing staking in crypto ETFs.

Nate Geraci, president of ETFStore, also predicted that combined ETFs featuring Bitcoin, Ethereum, and Solana will likely debut soon.

An ETF issuer will file for combined spot BTC, ETH, & SOL ETF in the next few months. We’re quickly heading towards index-based and actively managed crypto ETFs.

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