Despite volatile cryptocurrency markets, global digital asset funds saw net inflows of $474 million in July (till July 29), the biggest amount so far this year, a report by digital asset manager CoinShares said.
According to the report, with a total inflow of $481 million, cryptocurrency funds nearly offset all of June's outflows. Nevertheless, despite an optimistic outlook for digital assets, the trade volume remained low last week, at $1.3 billion, compared to the weekly average of $2.4 billion for 2022.
However, July was a good month for cryptocurrencies, with Ethereum (ETH) rising by about 50 per cent and Bitcoin (BTC) recovering by about 15 per cent.
The CoinShares report said that cryptocurrency funds saw an inflow of $81 million last week, taking the total inflows over the past five weeks to $0.53 billion, or 1.6 per cent of assets under management (AUM).
North America contributed most of the inflows. The US and Canadian contributions were $15 million and $67 million, respectively. Minor outflows were seen from Sweden and Brazil.
Last week, BTC received inflows of $85 million, while short bitcoin (a bet on decreasing prices) saw outflows of $2.6 million. It is the first time since the bear market has seen inflows for five weeks in a row.
Multi-asset investment products witnessed outflows of $3.7 million for the second week in a row, indicating investors are becoming more specialised in their investments.
Solana saw modest inflows of about $1.5 million, and with inflows of $114 million so far, it is still the investment favourite in 2022. Last week, Polkadot also experienced inflows of $0.4 million. Global digital asset manager Grayscale had an AUM of $21.46 billion, followed by CoinShares at $2.11 billion and 21Shares with AUM of $1.15 billion, in terms of individual crypto fund providers. For the week ending July 29, the total AUM of the crypto fund providers was $32.53.
In July this year, a report named "What Does the Future Hold for Crypto Exchanges?", published by Boston Consulting Group (BCG), Bitget, and Foresight Ventures, showed that despite the recent crypto market slowdown, the crypto economy is here to stay.
"The top 20 coins today look very different from just 5 years ago. Among these is Layer 1 tokens, which can validate and finalize transactions without the need for another network. Overall, the crypto ecosystem has matured significantly, with around 10,000 applications today, compared to 800 in 2017," said the report.
