Bitcoin Investment Products See Robust Inflows of $2.2 Billion as Ethereum Inflows Rebound

Crypto asset investment products saw robust inflows of $2.2 billion last week, with Bitcoin expectedly leading the way. This marks a major milestone

Crypto asset investment products witnessed a strong week of inflows, with a total of $2.2 billion, as noted by CoinShares in its latest report.

The inflows were largely driven by Bitcoin, which saw inflows of $1.48 billion. This brings the year-to-date inflows for crypto asset investment products to a record $33.5 billion.

The inflows follow an 11-week rally, which were fueled by interest rate cuts and growing optimism surrounding crypto markets.

However, Bitcoin’s priceдостигли record highs during the week, which triggered mixed reactions and influenced market flows across regions and assets.

Bitcoin Leads Investment Inflows

According to the report, Bitcoin-related inflows led the way with $1.48 billion, as the world’s largest cryptocurrency surged past previous all-time price highs.

The excitement pushed total assets under management (AuM) for Bitcoin investment products to an all-time high of $138 billion earlier in the week.

However, as prices reached record levels, $866 million in outflows were observed in the latter half of the week, likely indicating profit-taking by investors.

Interestingly, this price activity also led to $49 million in inflows into short Bitcoin products, which could be a strategy to hedge against further price declines.

Ethereum Inflows Rebound

Inflows into Ethereum-based investments recovered strongly last week, securing $646 million, which constituted around 5% of their total AuM.

The inflows mark a recovery for Ethereum investment products, which had seen several weeks of muted activity.

According to analysts, Ethereum’s rebound could be attributed to growing enthusiasm surrounding Justin Drake’s Beam Chain network upgrade proposal and the favorable market outlook post-US elections.

Solana, XRP, and Other Assets

Solana investment products continued their trend of gathering inflows, securing $24 million, while XRP-based investments added $4.3 million, maintaining steady growth.

Additionally, ETPs for Litecoin and Cardano saw modest inflows of $0.7 million and $3.4 million, respectively.

In contrast, Binance Coin (BNB) and multi-asset products experienced negative flows last week, while Tron (TRX) saw no investment change.

Regional Sentiment: Mixed Signals

Regional inflows also varied during the week. The United States dominated with $2.2 billion in inflows, reflecting strong institutional interest.

Meanwhile, Hong Kong, Australia, and Canada saw more modest inflows of $27 million, $18 million, and $13 million, respectively.

At the same time, profit-taking dampened activity in Europe, with Sweden and Germany recording outflows of $58 million and $6.8 million, respectively.