Inflows into digital asset investment products have hit a new record of over $17.8 billion year-to-date (YTD), pointing to the start of a potential crypto market recovery.
The new record comes after cryptocurrency investment products saw a total of $1.44 billion worth of inflows last week.
According to CoinShares data, the year-to-date inflows for 2024 have reached $17.8 billion, significantly surpassing the previous record of $10.6 billion set in 2021.
According to the report, the lion’s share of the inflows is attributed to United States-based buyers, while Switzerland has also bought record amounts of digital assets. CoinShares said:
“Regionally, the US led with US$1.3bn for the week, although the positive sentiment was seen across all other countries, most notable being Switzerland (a record this year for inflows), Hong Kong and Canada with US$58m, US$55m and US$24m respectively.”
Related: Crypto holders predicted to triple by 2026, says Lunu CEO
Bitcoin records fifth-largest week of inflows
Bitcoin (BTC) experienced its fifth-largest weekly inflow on record, amounting to over $1.35 billion. This substantial influx helped the world’s first cryptocurrency rebound above the significant $60,000 mark.
Meanwhile, short Bitcoin-related investment products experienced their largest weekly outflows since April 2024, totaling over $8.6 million.
Last week’s Bitcoin dip-buying was likely due to the price decline, caused partly by the German government selling BTC. According to CoinShares:
“We believe price weakness due to the German Government bitcoin sales and a turnaround in sentiment due to lower than expect CPI in the US prompted investors to add to positions.”
Related: Bitcoin bottom signal? German gov’t runs out of BTC to sell
Ethereum sees $72 millio in inflows in anticipation of Ether ETF
Ether (ETH) had the second-largest inflows after Bitcoin, totaling over $72.1 million for the past week.
The growing inflows likely came in anticipation of the first spot Ethereum exchange-traded fund (ETF) in the US, which could launch for trading as soon as the next few weeks.
US spot Ether ETF issuers are expecting to receive final comments from the Securities and Exchange Commission (SEC) by early this week, according to an industry source familiar with the matter.
Several issuers, including VanEck and 21Shares, filed amended registrations this week in hopes of receiving the SEC’s final signoff to begin listing spot Ether ETFs. Eight spot issuers are awaiting regulatory approval in the US.