Cryptocurrency ETPs Remain Attractive Amid Pessimistic Market

Cryptocurrency-based exchange-traded products remain popular among investors, despite overall negative sentiment in the crypto market. Andrei Grachev, managing partner of DWF Labs, shares insights on this trend.

Crypto ETPs Still Attractive Despite Market Cap Decline

Cryptocurrency-based exchange-traded funds (ETFs) focused on spot Bitcoin (BTC) and Ethereum (ETH) are experiencing significant liquidity inflows amid stagnant market conditions. While the overall cryptocurrency market cap has turned downwards again, crypto ETFs continue to see positive inflow streaks.

Andrei Grachev attributes this trend to the long-term commitment of traditional finance (TradFi) investors, stating:
> “When capital flows in during a down week, it is a clear sign that institutions are allocating on structure, not sentiment. ETPs are providing the kind of access and liquidity these investors need, and they are becoming a central part of how capital interacts with crypto.”

It’s evident that cryptocurrency ETFs have evolved into an independent and appealing asset class for various investor groups across different regions.

Typically, crypto-based exchange-traded products are acquired by family offices, investment funds, and asset management studios, allowing institutions to allocate capital to crypto without directly purchasing Bitcoin or Ethereum.

Investing in ETFs offers a fully regulated, secure, and resource-efficient way to invest in cryptocurrency without the complexities of infrastructure.

Bitcoin ETF AUM Reaches New High

As of July 1, 2025, the aggregated cryptocurrency market capitalization has dropped by nearly 3%, falling below $3.4 trillion. Bitcoin (BTC), the largest cryptocurrency, is trading at $106,561, reflecting a 1.2% decline in the last 24 hours, while Ethereum (ETH) has decreased by 0.8% to $2,446.

In contrast, Bitcoin (BTC) Spot ETFs in the United States have achieved their 21st consecutive day of positive performance. Following this substantial inflow, the aggregated assets under management (AUM) have surged to an all-time high (ATH) exceeding $135 billion. Ethereum Spot ETFs have also shown positive trends in recent days.