According to the latest report by CoinShares, crypto asset investment products have achieved a historic milestone, with weekly inflows totaling $3.85 billion, surpassing previous records set earlier this year.
CoinShares highlighted a surge in investor interest, propelling total year-to-date (YTD) inflows to $41 billion and assets under management (AuM) to $165 billion—a contrast to prior cycle highs in 2021, which saw YTD inflows of $10.6 billion and an AuM peak of $83 billion.
While Bitcoin continued to dominate, Ethereum posted its largest weekly inflows on record, highlighting the growing demand for major digital assets.
Bitcoin And Ethereum Lead Inflows
Bitcoin remained a key driver of the record-breaking numbers, with inflows amounting to $2.5 billion last week. This pushed its YTD inflows to $36.5 billion, solidifying its status as the leading digital asset. Interestingly, short Bitcoin products experienced subdued inflows of $6.2 million.
Historically, higher inflows into short Bitcoin products have been observed following sharp price rises, indicating investor caution amidst Bitcoin’s strong price momentum.
Ethereum emerged as another standout performer, recording its largest-ever weekly inflows of $1.2 billion. This surge surpassed the inflows seen during the ETF launches in July.
The increased demand for Ethereum highlights its growing significance in the crypto asset market. However, this growth has come at the expense of Solana, which saw outflows of $14 million for the second consecutive week, signaling a potential shift in investor sentiment.
Digital asset investment products saw the largest weekly inflows on record last week totalling US$3.85bn!
This brings total year-to-date (YTD) inflows to US$41bn and total assets under management (AuM) to a new high of US$165bn.#Bitcoin saw inflows of US$2.5bn, Short bitcoin… pic.twitter.com/bAKYga8qKK
— CoinShares (@CoinSharesCo) December 9, 2024
Meanwhile, despite the discrepancy between Bitcoin, Ethereum, and Solana fund flows, their recent performance has been quite similar. For instance, three of these crypto assets have seen a pullback in price over the past day.
While BTC has decreased by 1.2% to a current trading price of $99,095, Ethereum has also decreased by 2.6% to a current trading price of $3,894.
On the other hand, Solana has plunged by 3.3% to a current trading price of $229, at the time of writing.
Blockchain Equities And Regional Trends
In addition to cryptocurrencies, blockchain equities attracted significant interest, with inflows reaching $124 million—the highest since January 2023.
According to CoinShares’ head of research, James Butterfill, this trend is attributed to increased confidence in Bitcoin miners’ improving profit margins, reflecting a broader positive outlook on the blockchain sector’s growth potential.
Regionally, the United States dominated inflows, followed by European and Australian markets. Particularly, the United States led with $3.6 billion in inflows, 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