Emily Walker
A recent report by CoinShares reveals that investments in crypto asset products have soared to a historic high, with weekly inflows reaching $3.85 billion, breaking previous records from earlier this year.
CoinShares noted an increased interest from investors, bringing the total year-to-date (YTD) inflows to $41 billion and assets under management (AuM) rising to $165 billion. This marks a significant leap compared to the previous cycle in 2021, which had YTD inflows of only $10.6 billion and an AuM peak of $83 billion.
Bitcoin has maintained its leading position, while Ethereum experienced its highest weekly inflows ever, reflecting a growing appetite for major cryptocurrencies.
Leading the Charge: Bitcoin and Ethereum
Bitcoin has played a crucial role in driving these record numbers, with last week’s inflows reaching $2.5 billion. This brings its YTD inflows to $36.5 billion, further solidifying its status as the top digital asset. Interestingly, short Bitcoin products saw lower inflows of just $6.2 million.
Typically, short Bitcoin products witness higher inflows following significant price increases, which suggests investor caution due to Bitcoin’s robust price movement.
Ethereum also stood out by recording its largest weekly inflows of $1.2 billion, surpassing the inflows seen during July’s ETF launches.
The rising demand for Ethereum illustrates its growing role in the crypto market. However, this surge has been at the expense of Solana, which faced outflows of $14 million for the second week in a row, indicating a potential shift in investor preferences.
Digital asset investment products set a new record with weekly inflows totaling $3.85 billion!
This raises total ytd inflows to $41 billion and total AuM to a new high of $165 billion. #Bitcoin saw inflows of $2.5 billion, while Short bitcoin… pic.twitter.com/bAKYga8qKK
— CoinShares (@CoinSharesCo) December 9, 2024
Despite the variations in fund flows among Bitcoin, Ethereum, and Solana, their recent performances have been somewhat similar, with all three experiencing price declines in the past day.
Currently, Bitcoin is down by 1.2% at $99,095, while Ethereum has dropped by 2.6% to $3,894.
In contrast, Solana has seen a sharper decline of 3.3%, bringing its current price to $229.
Trends in Blockchain Equities and Regional Insights
Beyond cryptocurrencies, blockchain equities have drawn considerable attention, with inflows hitting $124 million—the highest level since January 2023.
As per James Butterfill, head of research at CoinShares, this upward trend is due to increasing confidence in the rising profit margins of Bitcoin miners, indicating a broader optimism regarding the blockchain sector’s growth prospects.
Geographically, the United States led the charge in inflows, followed by Europe and Australia. The U.S. topped with $3.6 billion, trailed by Switzerland ($160 million), Germany ($116 million), Canada ($14 million), and Australia ($10 million).
Image created with DALL-E, Chart sourced from TradingView