In July, Cryptocurrency Funds Saw The Strongest Institutional Monthly Inflows in 2022

Post a brutal second quarter for the crypto markets this year, institutions are back in the game once again. As per the latest report from CoinShares, institutional monthly inflows in crypto funds remained the strongest during the last month in July, so far in 2022.

The total monthly inflows for July stood at $474 million. This has entirely compensated for the net June outflows which totaled $481 million. Despite the macro headwinds, cryptocurrencies are posing a strong show gearing up for the month of August.

Last week, the digital asset investment products saw net inflows at US$81m. This was the fifth consecutive week of inflows after the crypto winter of Q2 2022. The net inflows over the five weeks totaled at US$0.53bn, or 1.6% of total assets under management (AuM).

Bitcoin and Altcoins Break-Up

Last week, the Bitcoin investment products registered net inflows at US$85m. On the other hand, short Bitcoin outflows stood at US$2.6m. This was also the first week of outflows for Bitcoin after five weeks of net inflows.

Ethereum’s Layer-1 competitor Solana also registered minor inflows at US$1.5m. Furthermore, SOL has remained investors’ favorite in 2022 with year-to-date inflows standing at US$114m. Additionally, CoinShares explains:

Multi-asset investment products, unusually, saw outflows for the second consecutive week totalling US$3.7m, suggesting investors are becoming more targeted in their investment.

However, CoinShares also hints to remain cautious at this point. It notes that despite a strong bullish momentum, the overall trading activity remains low. Last week, the total crypto trading volumes stood at US$1.3bn in comparison to this year’s weekly average of US$2.4bn.

This month of August is likely to stay volatile for the broader crypto space. Last month, altcoins had a strong rally led by Ethereum with the optimism surrounding The Merge upgrade.

Bitcoin ended the last month with over 18% gains. It will interesting to watch new developments in August.