Crypto-exchange trade funds on US exchanges recorded the strongest month in history in July, attracting a net inflow of $12.8 billion as investors’ enthusiasm surged along with rising token prices and optimism over regulation.
Data reported by Eric Bulknath of Bloomberg Intelligence shows new monthly records for this sector. The only month that approached was November 2024. This was when the market came together in the election of Donald Trump, which was widely considered to be beneficial to cryptocurrency benefits.
This time, bullishness may not be driven much by politics, but by the foundation. The crypto market tracked by the Coindesk 20 index exceeded 21% in July. Bitcoin
Rose 7% won the new all-time top of $122,408 over the month.
Much of the action was centered around BlackRock’s Ishares Bitcoin Trust (IBIT), and quietly grew into a financial giant. With assets of over $86 billion, IBIT currently has established ETFs such as the S&P 500 Tracking IVV and the Russell 2000 IWM. The fund’s higher fee structure gives BlackRock an advantage over flagship equity products.
These benefits may be just the beginning. Earlier this week, the Securities and Exchange Commission approved the creation and redemption of all spot Bitcoin and Ethereum ETFs in physical form.
For large asset managers, lymphatic redemption allows cryptocurrencies to be exchanged without triggering taxable events or facing liquidity crunches.
