Digital Asset Investments See Record $3.13B Weekly Inflows, YTD Total Reaches $37B

Digital asset investment products have recorded their largest-ever weekly inflows of $3.13 billion.

The surge brings total inflows since mid-September—when U.S. interest rates were first reduced—to $15.2 billion, and year-to-date inflows to a record-breaking $37 billion according to a report from CoinShares.

Bitcoin continues to dominate the market, driving much of the growth and far surpassing the performance of early U.S. Gold ETFs, which only managed $309 million in inflows during their first year.

U.S. Leads in Terms of Inflows

Geographically, the U.S. led with inflows of $3.2 billion, reflecting robust investor interest.

However, profit-taking was evident in Europe, with outflows recorded in Germany ($40 million), Sweden ($84 million), and Switzerland ($17 million).

In contrast, regions like Australia, Canada, and Hong Kong showed more optimism, contributing inflows of $9 million, $31 million, and $30 million, respectively.

Bitcoin accounted for the lion’s share of inflows at $3 billion, even as its record-breaking price levels prompted $10 million in inflows into short-Bitcoin products, marking a monthly high of $58 million not seen since August 2022.

Meanwhile, Solana stood out among altcoins, attracting $16 million in inflows compared to Ethereum’s $2.8 million.

XRP, Litecoin, and Chainlink also saw notable investments, with $15 million, $4.1 million, and $1.3 million, respectively.

Digital asset investment products saw the largest weekly inflows on record, totalling $3.13bn, bringing total year-to-date inflows to a record $37bn.

Bitcoin saw inflows of $3bn while Ethereum saw $2.8m in inflows. pic.twitter.com/6TpDH9Z1hu

— LondonCryptoClub (@LDNCryptoClub) November 25, 2024

Multi-asset products, however, faced their second consecutive week of outflows, losing $10.5 million.

Despite a slight market dip over the weekend, triggered by the liquidation of over $100 million worth of Bitcoin and Ethereum positions, both assets remain above key support levels of $95,000 and $3,200, respectively.

Volatility remains elevated, with Bitcoin expected to trade sideways until December, while Ethereum gains near-term focus, according to a recent note from QCP Capital.

Options data show strong demand for Ethereum call options, suggesting growing interest in the asset, while Bitcoin calls are being bid for later dates, likely influenced by anticipated pro-crypto policies under Trump’s administration.

Market Sentiment Shifts Toward Ethereum

Market sentiment hints at a gradual rotation from Bitcoin to Ethereum and other altcoins if Bitcoin continues to face resistance at the $100,000 mark.

Bitcoin dominance has already dropped from 62% to 59% over the past week, reflecting this shift, QCP said in the note.

“ETH risk reversals remain heavily skewed in favor of frontend Calls, while BTC Calls seem to be more bid only from 27DEC24 onwards, driven by the potential impact of Trump’s pro-crypto policies which are only likely to take effect later next year.”

Adding intrigue, MicroStrategy’s Michael Saylor hinted at further Bitcoin purchases.

Following MicroStrategy’s post-election acquisitions, the market is eager to see if another investment could propel Bitcoin past the elusive six-digit milestone, potentially delaying the altcoin rally for a little longer.

As reported, global investment manager VanEck has reaffirmed its ambitious $180,000 price target for Bitcoin, forecasting this milestone at the peak of the ongoing market cycle.

VanEck digital asset analysts Nathan Frankovitz and Matthew Sigel expressed confidence that the next phase of the Bitcoin bull run is “just beginning.”