Emily Walker
The newest report from CoinShares, titled Digital Asset Fund Flows Weekly, highlights recent trends in cryptocurrency investments.
According to the report, investment products linked to digital assets saw an influx of $270 million last week, leading to a yearly total of $37.3 billion in inflows.
However, there are significant differences among cryptocurrencies, pointing to a changing mood in the digital asset landscape.
Market Changes Reflected in Fund Flows
A key observation is the contrasting investor attitudes toward Bitcoin and Ethereum. Bitcoin faced outflows totaling $457 million, which is its largest decline since early September.
James Butterfill, Coinshares’ research head, linked this trend to “profit-taking” after Bitcoin approached the crucial $100,000 level.
Conversely, Ethereum attracted significant inflows of $634 million, increasing its total this year to $2.2 billion, surpassing its previous best of $2 billion reached in 2021. This trend reflects growing investor trust in Ethereum as it regains momentum.
Additionally, XRP recorded a remarkable inflow of $95 million, achieving a new peak for the asset. Butterfill notes this rise is driven by optimism regarding the possible approval of a US exchange-traded fund (ETF) for XRP, strengthening its market position.
The United States was the leading contributor to inflows, bringing in $266 million, followed by Hong Kong and Germany with $39 million and $12.3 million, respectively.
On the other hand, Switzerland and Canada experienced outflows of $26 million and $10 million, showcasing regional differences in investor activity.
The regional analysis underscores the US’s role as the main engine for digital asset investments, while global interest in cryptocurrencies remains robust.
Performance of Ethereum and Bitcoin
Recently, Bitcoin has garnered attention by breaking through several resistance levels and achieving new all-time highs, while Ethereum is also making strides in the market.
Although Ethereum has yet to reach its previous all-time high, it has successfully broken important resistance levels and is currently trading over $3,600—a near 50% increase in the last month.
A well-known crypto analyst, Titan of Crypto, suggests that Ethereum’s peak in this cycle could reach up to $10,000, following historical patterns and the 141.40% Fibonacci extension seen in past cycles.
#Ethereum Cycle Top: $7,800–$9,900?
In the last cycle, #ETH peaked near the 141.40% Fibonacci extension.
If history repeats, this cycle’s top could approach $10K. pic.twitter.com/qnar4UqSW1
— Titan of Crypto (@Washigorira) December 1, 2024
As of now, Bitcoin is notably active in the market, trading at $97,130, reflecting a significant 39.8% increase over the past month, which showcases the ongoing bullish trend for the cryptocurrency.
Featured image created with DALL-E, Chart from TradingView