Crypto asset investment products reached a historic milestone with weekly inflows of $3.85 billion, surpassing previous records set earlier this year, according to CoinShares’ latest report.
CoinShares highlighted the boost in investor interest, increasing total year-to-date (YTD) inflows to $41 billion and assets under management (AuM) to $165 billion – a contrast to the previous cycle’s highs in 2021, which saw inflows from beginning of the year was $10.6 billion and AuM peaked at $83 billion.
While Bitcoin continued to dominate, Ethereum recorded its largest-ever weekly inflows, highlighting growing demand for the mainstream digital asset.
Bitcoin and Ethereum leads inflow
Bitcoin remained a key driver of the record numbers, with $2.5 billion in inflows last week. This increased the company’s year-to-date revenue to $36.5 billion, cementing its status as a leading digital asset. Interestingly, Bitcoin shorts saw constrained inflows of $6.2 million.
Historically, greater inflows into Bitcoin compact products have been seen following price spikes, indicating investor caution in the face of robust Bitcoin price momentum.
Ethereum emerged as another standout performer, recording its largest-ever weekly inflow of $1.2 billion. This growth exceeded the inflows recorded during July ETF launches.
The increased demand for Ethereum highlights its growing importance in the crypto asset market. However, this growth came at the expense of Solana, which reported an outflow of $14 million for the second week in a row, signaling a potential shift in investor sentiment.
📈Digital asset investment products recorded their largest-ever weekly inflow last week, reaching $3.85 billion!
This means that total year-to-date (YTD) inflows amounted to $41 billion and total assets under management (AuM) reached a novel record of $165 billion.#Bitcoin saw $2.5 billion inflow, compact bitcoin… pic.twitter.com/bAKYga8qKK
— CoinShares (@CoinSharesCo) December 9, 2024
Meanwhile, despite the divergence between Bitcoin, Ethereum, and Solana’s fund flows, their recent performance has been quite similar. For example, three of these crypto assets have seen their prices decline over the past day.
While BTC fell 1.2% to the current trading price of $99,095, Ethereum also fell 2.6% to the current trading price of $3,894.
On the other hand, Solana is down 3.3% to its current trading price of $229 at the time of writing.
Blockchain Stocks and Regional Trends
In addition to cryptocurrencies, shares based on blockchain technology attracted great interest, with inflows reaching $124 million – the most since January 2023.
According to CoinShares head of research James Butterfill, this trend is attributed to increased confidence in improving profit margins for Bitcoin miners, which reflects a broader positive outlook on the blockchain sector’s growth potential.
Regionally, the inflow of goods was dominated by the United States, followed by European and Australian markets. In particular, the United States led the way with an inflow of $3.6 billion, followed by Switzerland, Germany, Canada and Australia with $160 million, $116 million, $14 million and $10 million, respectively.
Featured image created with DALL-E, chart from TradingView
