Crypto ETPs Bloom Despite Market Weakness, DWF Labs' Andrei Grachev Says

Cryptocurrency-based exchange-traded products remain popular among investors while overall crypto sentiment remains pessimistic. Andrei Grachev, managing partner of trading firm DWF Labs and digital assets segment veteran, shares his thoughts on this interesting trend.

Crypto ETPs still attractive value as market cap tumbles

Cryptocurrency-based exchange-traded funds (ETFs) on spot Bitcoin (BTC) and Ethereum (ETH) are witnessing a huge inflow of liquidity amid stagnant markets. While the cryptocurrency market cap is in red again, crypto ETFs are expanding their positive inflow streaks.

Commenting on the process, Andrei Grachev, Managing Partner of DWF Labs, a leading market-making and trading firm, attributed this to the long-term commitment of TradFi investors:

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.

Advertisement

It is safe to day that cryptocurrency ETFs evolved into an independent and attractive class of assets suitable for various investor groups in different regions.

Normally, crypto-based exchange-traded products are purchased by family offices, investing funds, asset management studios, i.e., by all institutions interested in allocating value to crypto without the need to buy Bitcoin or Ethereum directly.

Investing in ETFs remains a  fully regulated, secure, resource-effective way to invest in crypto while avoiding infrastructure legwork.

Bitcoin ETF AUM hits new high over $135 billion

Today, July 1, 2025, the aggregated capitalization of cryptocurrency market dropped by almost 3% and dipped below $3.4 trillion.

Bitcoin (BTC), the largest cryptocurrency, is trading at $106,561, down 1.2% in the last 24 hours. Ethereum (ETH) lost 0.8% and dropped to $2,446.

By contrast, Bitcoin (BTC) Spot ETFs in the U.S. are seeing its 21st consecutive day in green. After this massive inflow, aggregated AUM climbed to a new ATH over $135 billion.

Ethereum Spot ETFs are also positive in recent days.