Despite Ethereum's Losses, Digital Asset Market Ended a Five-Week Streak of Net Outflows, Bringing in $644 Million

Bitcoin led the recovery, attracting $724 million in inflows—its largest since January. The bulk of this came from the U.S., where BlackRock's iShares Bitcoin Trust (IBIT) played a significant role

The digital asset market closed out a five-week streak of net outflows, with net inflows of $644 million over the past week, new data from CoinShares showed on Monday.

Bitcoin was a major driver of this recovery, with $724 million flowing into the world’s largest cryptocurrency—its largest weekly inflow since January. The majority of these inflows came from the U.S., which saw a total of $632 million pour into Bitcoin products.

This was largely driven by the launch of iShares Bitcoin Trust (IBIT), an exchange traded note (ETN) by BlackRock (NYSE:BLK). The iShares parent, Morningstar (NASDAQ:MCF), had announced plans to launch the IBIT in July.

Switzerland also saw strong inflows into Bitcoin, with a total of $15.9 million, while Germany had $13.9 million and Hong Kong had $1.2 million. On the other hand, Canada and Sweden both saw net outflows from Bitcoin.

Ethereum, however, continued to see outflows, which impacted the rest of the altcoin market. Together, altcoins saw a total of $1.3 million in outflows for the week.

Sui and Polkadot each had $1.3 million in outflows, while Tron had $950,000. But Solana saw strong inflows as the U.S. prepares for the launch of the first Solana futures ETF.

The world’s second-largest cryptocurrency is set to benefit from a new iShares product that will track futures contracts on the cryptocurrency. It is likely to be listed on Monday, pending approval from the Securities and Exchange Commission (SEC).

Once the futures ETF is listed, it is likely to attract significant investor interest, especially given the growing demand for crypto products. Moreover, the launch of the futures ETF could eventually pave the way for the first spot Solana ETF.

Meanwhile, XRP also saw strong inflows following recent legal developments. The SEC dropped its lawsuit against Ripple Labs, which had been pending for years.

The case had a significant impact on the crypto industry, as the SEC is currently suing several other crypto firms, including Coinbase (NASDAQ:COIN) and Binance.

The SEC’s lawsuit against Ripple Labs was over the alleged unregistered sale of XRP to investors. But in June, the SEC dropped the case after reaching a settlement with Ripple.

The agency will now accept a new registration statement for the offering of IBIT on behalf of iShares. Moreover, the agency approved the iShares Bitcoin Trust in an internal vote on Monday, clearing the final hurdle for the product’s launch.

Bitcoin ETFs have been a major focus of the market this year, particularly with the SEC’s shifting stance on spot ETFs.

Earlier this year, futures-based Bitcoin ETFs were able to gain approval due to the regulated nature of the Chicago Mercantile Exchange, which alleviated concerns over market manipulation. But a lawsuit from Grayscale forced the SEC to reconsider its rejection of spot Bitcoin ETFs.

Ultimately, the SEC approved several spot Bitcoin ETFs, which is likely to have a lasting impact on investor sentiment.

Bitcoin’s strong inflows helped to stabilize the digital asset market despite Ethereum’s ongoing struggles. And while the altcoin sector as a whole was dragged down by these losses, XRP and Solana stood out as exceptions, benefitting from legal and market developments.