Bitcoin and Ether Lead $17.8B Crypto Inflows
Record-Breaking Crypto Inflows
Bitcoin and Ether have led the way in a massive $17.8 billion inflow into digital asset investment products this year. This is a new record, showing that the crypto market might be starting to recover. Just last week, cryptocurrency investment products saw $1.44 billion in inflows.
Bitcoin’s Big Week
Bitcoin had its fifth-largest week of inflows ever, bringing in over $1.35 billion. This huge amount helped Bitcoin’s price bounce back above the $60,000 mark. At the same time, short Bitcoin-related products saw their biggest outflows since April 2024, with over $8.6 million leaving these investments.
Ethereum’s Strong Performance
Ether, the cryptocurrency for Ethereum, had the second-largest inflows after Bitcoin. Ether saw over $72.1 million in inflows last week. Many investors are excited because the first spot Ethereum ETFs in the US might start trading soon. These ETFs are waiting for the final approval from the Securities and Exchange Commission (SEC).
Year-to-Date Inflows
So far in 2024, inflows into digital asset investment products have hit over $17.8 billion. This beats the previous record of $10.6 billion set in 2021. Most of these inflows are from buyers in the United States, but Switzerland, Hong Kong, and Canada have also seen significant investments in digital assets.
Regional Inflows
According to CoinShares data, the US led with $1.3 billion in inflows last week. Switzerland also bought a record amount of digital assets, with $58 million in inflows. Hong Kong and Canada followed with $55 million and $24 million, respectively.
Factors Influencing Bitcoin Inflows
Last week’s dip in Bitcoin’s price was partly due to the German government selling Bitcoin. This price drop, along with lower than expected Consumer Price Index (CPI) numbers in the US, encouraged many investors to buy more Bitcoin.
Ethereum ETF Anticipation
The anticipation of the first spot Ethereum ETFs in the US has driven significant inflows into Ether. Several issuers, including VanEck and 21Shares, have filed for these ETFs and are awaiting the SEC’s final approval. If approved, these ETFs could start trading in the next few weeks.
Inflows by Asset
Bitcoin and Ether are leading the inflows, but other digital assets are also seeing significant investments. The positive sentiment is not just limited to these two cryptocurrencies; it extends to the entire digital asset market.
Impact of Short Bitcoin-Related Products
Short Bitcoin-related investment products experienced their largest weekly outflows since April 2024, totaling over $8.6 million. This suggests that investors are less interested in betting against Bitcoin and are more confident in its price going up.
Institutional Inflows
Institutional investors are a major driver of these inflows. Large institutions are buying significant amounts of digital assets, showing their growing confidence in the crypto market.
Conclusion
In conclusion, Bitcoin and Ether have led to a record-breaking $17.8 billion in inflows into digital asset investment products this year. With Bitcoin hitting its fifth-largest weekly inflow and Ether seeing strong inflows ahead of the US Ether ETFs, the crypto market shows signs of recovery. The inflows are largely driven by US-based buyers, but other regions like Switzerland, Hong Kong, and Canada are also making significant investments. This trend suggests that both retail and institutional investors are becoming more confident in the future of digital assets.
