Crypto investment products experienced a significant milestone last week, with weekly inflows reaching $3.85 billion, as reported by CoinShares. This surge pushed year-to-date totals to $41 billion, with assets under management climbing to $165 billion. These figures surpassed the previous record set in 2021, with Bitcoin leading the way.
Bitcoin contributed $2.5 billion to the total inflows, bringing its year-to-date inflows to $36.5 billion. US-based Bitcoin ETFs, such as BlackRock’s IBIT and Fidelity’s FBTC, played a significant role in these numbers. Interestingly, the collective BTC holdings of these products now exceed those of Satoshi Nakamoto, the mysterious creator of Bitcoin.
Short Bitcoin products also saw inflows of $6.2 million, with CoinShares’ head of research James Butterfill attributing this to the current bullish market momentum. However, he noted that the modest sum reflects a cautious stance among bearish traders amidst the market’s bullish trend. Historically, inflows into short products tend to increase following significant price surges.
Ethereum attracted $1.2 billion in inflows during the reporting period, marking its highest weekly total since the launch of Ethereum-based ETFs. This surge in demand for Ethereum products aligns with increasing interest in Ethereum’s utility and expanding institutional adoption. XRP also saw positive momentum, drawing over $134 million in inflows, with market optimism surrounding a potential XRP ETF launch in the US boosting investor interest.
XRP recently hit a seven-year price high, surpassing $2 and driving its market capitalization to a record $150 billion. However, the asset experienced a slight pullback of 5% in the last 24 hours and is currently trading at $2.43. Overall, the cryptocurrency market continues to see strong inflows into various investment products, with Bitcoin leading the way and Ethereum and XRP gaining traction among investors.
