Inflows into digital asset investment products have surged to a new record of over $17.8 billion year-to-date (YTD), indicating a potential recovery in the crypto market. According to data from CoinShares, cryptocurrency investment products attracted $1.44 billion in inflows just last week.
For the year 2024 so far, inflows have totaled $17.8 billion, surpassing the previous record of $10.6 billion set in 2021. The majority of these inflows are attributed to buyers in the United States, with significant contributions also coming from Switzerland, which experienced record-high inflows this year.
“Regionally, the US led with US$1.3bn for the week, although the positive sentiment was seen across all other countries, most notably Switzerland (a record this year for inflows), Hong Kong, and Canada with US$58m, US$55m, and US$24m respectively.”
Bitcoin logs its fifth-largest week of inflows
Bitcoin (BTC) saw its fifth-largest weekly inflow on record, totaling over $1.35 billion. This significant influx helped the world’s first cryptocurrency bounce back above the crucial $60,000 mark, reaching $62,562.
Meanwhile, investment products related to shorting Bitcoin saw their largest weekly outflows since April 2024, amounting to over $8.6 million.
Last week’s Bitcoin dip-buying was likely driven by price declines, influenced in part by the German government’s sale of BTC. According to CoinShares:
“We attribute the price weakness to the German government’s Bitcoin sales and a shift in sentiment following lower-than-expected CPI in the US, prompting investors to increase their positions.”
Ethereum attracts $72 million in inflows ahead of expected Ether ETF launch.
Ether (ETH), despite declining to $3,338, saw the second-largest inflows after Bitcoin, totaling over $72.1 million for the past week.
The increased inflows are likely due to anticipation surrounding the first spot Ethereum exchange-traded fund (ETF) in the US, expected to begin trading in the coming weeks.
According to sources familiar with the matter, US spot Ether ETF issuers anticipate receiving final feedback from the Securities and Exchange Commission (SEC) early this week. This week, several issuers, including VanEck and 21Shares, filed amended registrations in hopes of securing SEC approval to list spot Ether ETFs. Currently, eight issuers are awaiting regulatory clearance in the US.
