Digital Asset Investment Products See Largest Inflows on Record
According to a report by crypto investment firm CoinShares, digital asset investment products saw their largest inflows on record, with $3.85 billion invested during the trading week of Dec. 2-6.
This milestone came just a few weeks after crypto investment products smashed the previous record of $3.12 billion set in November when Bitcoin (BTC) traded at about $98,000. The new high in weekly crypto inflows coincided with Bitcoin breaking above $100,000 for the first time on record on Dec. 5, reaching an all-time high of $104,000.
Bitcoin Leads with $2.5 Billion in Inflows
Coinciding with the Bitcoin price hitting new highs last week, BTC investment products led total crypto weekly inflows with $2.5 billion, bringing year-to-date inflows to $36.5 billion. Short Bitcoin investors were less active last week, with short BTC products seeing tepid inflows of $6.2 million.
Flows by Assets (in millions of US dollars)
| Asset | Inflows |
| — | — |
| Bitcoin (BTC) | $2,500 million |
| Ethereum (ETH) | $1,200 million |
| Blockchain Equities | $124 million |
| Other Cryptocurrencies | $125 million |
Ethereum ETPs See the Largest Weekly Inflows on Record
Ethereum, the second-largest blockchain network in terms of market capitalization after Bitcoin, also set new records in crypto investments last week amid Ether (ETH) surging past $4,000 on Dec. 6.
According to CoinShares, Ethereum products saw $1.2 billion in weekly inflows last week, its largest inflows on record since the first Ethereum exchange-traded funds (ETFs) started trading in the United States in July.
Solana Sees Outflows
A spike in Ethereum ETF investments came ‘at the expense’ of Solana, which has seen $14 million in outflows, Butterfill noted. Adding that Solana products saw their second consecutive week of outflows.
Blockchain Equities See Inflows
Additionally, blockchain equities saw inflows of $124 million, the largest since January, driven by growing investor confidence in improving Bitcoin miner margins, Butterfill said.
Cryptocurrency ETFs Have Seen a Massive Year in 2024
Following the historic launch of spot Bitcoin ETF trading in the US in January, cryptocurrency ETFs have seen a massive year. On Dec. 6, Bitcoin ETF holdings surpassed 1.1 million BTC combined for the first time, surpassing those held by the anonymous Bitcoin creator, Satoshi Nakamoto.
Investor Confidence on the Rise
The recent surge in crypto investments can be attributed to growing investor confidence in the market. As more institutional investors and mainstream media outlets begin to take notice of cryptocurrencies, it is likely that we will see continued growth in the coming months.
However, as James Butterfill noted, historically, we have seen much higher inflows after sharp price rises, suggesting investors remain cautious on betting against the recent strong momentum.
Conclusion
The record-breaking $3.85 billion in crypto investment products highlights the growing interest and confidence in the market. As prices continue to rise, it is essential for investors to stay informed and make educated decisions about their investments.
With Bitcoin surpassing $100,000 and Ethereum breaking past $4,000, it is clear that the market is experiencing a surge in growth. However, as with any investment, there are risks involved, and it is crucial to do your research before investing.
Sources:
- CoinShares’ report on crypto investment products
- Market data from various sources
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- Investors pile a record $432M into Ether ETFs amid 9 days of inflows
- BTC hits $100K, Trump taps Paul Atkins for SEC chair, and more: Hodler’s Digest, Dec. 1-7
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