Digital Asset Investment Products Hit Record-Breaking $3.85B Weekly Inflows

Digital asset investment products witnessed record inflows last week, reaching $3.85 billion and surpassing the previous record set just weeks earlier.

The surge has propelled year-to-date (YTD) inflows to $41 billion, with total assets under management (AuM) climbing to an all-time high of $165 billion, according to a report from CoinShares.

By comparison, the 2021 bull cycle saw inflows of $10.6 billion and an AuM peak of $83 billion.

U.S. Leads in Terms of Inflows

Regionally, inflows were led by the United States, which accounted for $3.6 billion of the total.

Other significant contributions came from Switzerland ($160 million), Germany ($116 million), Canada ($14 million), and Australia ($10 million).

Bitcoin investment products dominated the inflows, attracting $2.5 billion and bringing its YTD total to $36.5 billion.

Meanwhile, products that allow investors to short Bitcoin saw modest inflows of $6.2 million, a figure lower than historical norms following sharp price rises. This suggests caution among investors against the cryptocurrency’s recent upward momentum.

Ethereum also broke records, registering its highest-ever weekly inflow of $1.2 billion.

The surge overshadowed Ethereum’s July ETF launch and came at the expense of Solana, which experienced $14 million in outflows for the second consecutive week.

📈 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… pic.twitter.com/nDxjZzlHpm

— CoinShares US (@CoinSharesUS) December 9, 2024

As reported, spot Ether ETFs recorded their largest single-day inflow on December 5.

The inflow surge surpassed the previous record of $333 million set on November 29, highlighting growing investor confidence in Ether ETFs.

Blockchain equities saw inflows of $124 million, marking the largest weekly increase since January.

The surge reflects growing investor optimism fueled by improved profit margins for Bitcoin miners.

$10 Billion Flowed into Spot Bitcoin ETFs Since Trump Win

In the broader market, nearly $10 billion has flowed into U.S. exchange-traded funds (ETFs) directly investing in Bitcoin since the re-election of President Donald Trump on November 5.

The influx has lifted ETF assets to approximately $113 billion, underscoring investor confidence in the administration’s pro-crypto stance.

President Trump has pledged to replace the Biden administration’s skepticism toward digital assets with supportive regulations, including the concept of a strategic national Bitcoin reserve.

His administration’s appointments of crypto advocates to key regulatory and policy roles, such as the head of the Securities and Exchange Commission, have further fueled market optimism.

Bitcoin prices reflect this sentiment, surpassing $100,000 for the first time on December 5.

Although the token briefly dipped to $92,000 due to volatility, it remains on a six-week streak of gains, its longest since 2021’s crypto boom.

While Bitcoin’s historic surge past the $100,000 milestone has captivated the cryptocurrency market, Sergei Gorev, Head of Risk at YouHodler, remains cautious.

In a recent statement shared with Cryptonews.com, Gorev predicted that the price may see only moderate growth beyond this level before a significant correction takes hold.

“The cryptocurrency market is very fond of round numbers, and the price often unfolds in such cases.”