July’s Crypto Corner: No Summer Lull for Digital Assets

Crypto Heats Up: Bitcoin Hits Highs, Ether Takes Off

Bitcoin (BTC), the largest crypto asset, rose nearly 9% to end the month at the $117k mark. BTC found a new all-time high around $123k mid-month, then settled into a trading range of $115k-120k.

Ether (ETH), crypto’s “other major,” continued its mighty rally that began at the end of Q1, and added nearly 50% in July, bringing it close to its November 2024 peak, though still below its all-time high set years ago.

CoinDesk Indices' benchmark performance reflected market strength, with broad participation.

The CoinDesk 5 Index (CD5) gained 14.7% for the month, while the broad-based CoinDesk 20 Index (CD20) added 26.9%. 18 of 20 CD20 names rose in July. ETH’s performance accounted for 46% of CoinDesk 20’s gains, while BTC accounted for 10% and XRP for 23%. 

ETF Flows Break Records as ETH Gains Institutional Steam

Crypto-linked ETFs saw record-breaking inflows of $12.8 billion during the month, more than $5 billion of which was added to ETH ETFs. On some days, ETH ETF inflows even surpassed BTC’s, another sign of investor adoption of the dominant and largest layer 1 smart contract blockchain.

July got off to a dramatic start when a long-dormant bitcoin wallet awoke during the July 4th holiday weekend, transferring 80,000 bitcoins worth approximately $9 billion to a new wallet and inviting a wide range of theories about the wallet’s owner and motives. The wallet, idle since 2011, last saw action when bitcoin was worth less than a dollar.

Washington Steps In: Stablecoin Framework and ETF Reform

On the regulatory front, “Crypto Week” in Washington, DC concluded with the passage of the GENIUS Act on July 18, which created a framework for public blockchain stablecoins in the United States, a long-sought piece of legislation which will support a new era of stablecoin use for payments, trading, and maintaining US-dollar pegged assets on-chain.

In other regulatory news, the SEC began allowing issuers to process “in-kind” creations and redemptions of crypto asset ETFs, a long-awaited approval that is expected to enhance efficiency and reduce friction costs.

And what happened to those 80,000 bitcoins?  Trading firm Galaxy confirmed on July 25th that it had sold the coins on behalf of a client, a “Satoshi-era investor,” as part of a broader estate planning strategy. The market absorbed the sale well, with bitcoin dipping below $115K before rebounding to $117K.

About the Author: Andy Baehr, CFA

Andy leads research and product development of digital asset indices and strategies at CoinDesk Indices, bringing twenty-five years of global markets and investment management experience to help improve crypto trading and investing for everyone.

Prior to joining CoinDesk, Andy was a partner at Risk Premium Investments, an alternative asset management firm serving institutions. Earlier, he held leadership roles on derivatives desks at Credit Suisse, BNP Paribas, Morgan Stanley, and Deutsche Bank, focusing on options, structured products, and systematic strategies.

Andy holds BA and MBA degrees from Columbia University. He is a CFA® charter holder and holds the CAIA designation. Since 2008, Andy has served as a board member for Goodwill NYNJ.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.