Bitcoin recorded its fifth-largest week of inflows, helping it regain the $60,000 mark, while Ether inflows surged in anticipation of upcoming US Ether ETFs.
Digital asset investment products have reached a new milestone, with inflows surpassing $17.8 billion year-to-date (YTD), signaling a potential recovery in the crypto market.
Record-Breaking Inflows in 2024
Recent data from CoinShares highlights that cryptocurrency investment products saw a total of $1.44 billion worth of inflows last week alone. This brings the year-to-date inflows for 2024 to a record $17.8 billion, significantly exceeding the previous record of $10.6 billion set in 2021.
US Leads the Surge
The majority of these inflows are attributed to US-based buyers, with Switzerland also making significant purchases of digital assets. According to CoinShares: “Regionally, the US led with $1.3 billion for the week, although positive sentiment was observed across all other countries, most notably in Switzerland (a record this year for inflows), Hong Kong, and Canada with $58 million, $55 million, and $24 million respectively.”
Bitcoin’s Significant Inflows
Bitcoin saw its fifth-largest weekly inflow on record, totaling over $1.35 billion. This substantial influx helped Bitcoin recover above the crucial $60,000 threshold. The dip-buying was likely triggered by a price decline, partly due to the German government’s BTC sales. CoinShares noted: “We believe price weakness due to the German Government bitcoin sales and a turnaround in sentiment due to lower-than-expected CPI in the US prompted investors to add to positions.”
Ether Inflows Anticipate ETF Launch
Ether, the second-largest inflow receiver after Bitcoin, saw over $72.1 million in inflows last week. This surge is likely in anticipation of the first spot Ethereum exchange-traded fund (ETF) in the US, which could begin trading in the next few weeks.
US spot Ether ETF issuers are expecting final comments from the Securities and Exchange Commission (SEC) by early this week, according to industry sources. Several issuers, including VanEck and 21Shares, filed amended registrations recently, hoping to receive the SEC’s final approval to list spot Ether ETFs. Currently, eight spot issuers are awaiting regulatory approval in the US.
Short Bitcoin Investment Products See Outflows
Conversely, short Bitcoin-related investment products experienced their largest weekly outflows since April 2024, totaling over $8.6 million.
This influx of capital into digital assets, led by Bitcoin and Ether, indicates a renewed investor confidence and a potential turning point for the cryptocurrency market.
