The cryptocurrency market continues to attract investors, with digital asset investment products reporting $3.2 billion in new inflows last week. This marks the 10th straight week of gains, according to a report by CoinShares.
So far in 2024, total inflows have reached a record $44.5 billion. This is more than four times the amount seen in any previous year, showing how interest in digital assets has grown significantly.
Bitcoin leads the way
Bitcoin ($BTC) remains the top choice for investors, pulling in $2 billion in fresh inflows last week. Since the United States presidential election, Bitcoin-related investments have grown by $11.5 billion.
CoinShares’ head of research, James Butterfill, explained, “Bitcoin continues to dominate the market, reflecting its strong position as a reliable digital asset”.
Short Bitcoin products also saw activity, with $14.6 million in new investments. These products allow investors to profit if Bitcoin’s price drops. However, total assets under management (AuM) for short Bitcoin products remain low at $130 million.
Exchange-traded products (ETPs) linked to Bitcoin are also seeing high activity.Weekly trading volumes for these products averaged $21 billion, which accounts for 30% of Bitcoin’s trading volume on trusted exchanges.
Ethereum and other cryptos gain momentum
Ethereum ($ETH), the second-largest cryptocurrency, is also having a strong year. Last week, Ethereum-focused investment products brought in $1 billion.
This marks the seventh consecutive week of positive inflows, with $3.7 billion invested in Ethereum products over this period.
Altcoins, or alternative cryptocurrencies, are gaining interest as well. XRP ($XRP) led the pack with $145 million in inflows, fuelled by optimism around a potential US-listed XRP exchange-traded fund (ETF).
Other notable altcoins included Polkadot ($DOT), which saw $3.7 million in new investments, and Litecoin ($LTC), with $2.2 million in inflows. These figures reflect a growing appetite for diversifying beyond Bitcoin and Ethereum.
Butterfill added, “Investor interest in Ethereum and other cryptocurrencies shows that the market is expanding and maturing”.
A mixed picture for crypto ETFs
While most digital asset products are enjoying strong inflows, Grayscale’s Bitcoin Trust (GBTC) is facing challenges.
Since its launch, GBTC has experienced $21.045 billion in total outflows, averaging $89.9 million in daily withdrawals over the last 11 months. This makes it the only spot Bitcoin ETF in the US to record negative net flows.
However, other US-based spot Bitcoin ETFs are seeing positive results. A total of nine newly approved spot Bitcoin ETFs, including those from Fidelity, ARK 21Shares, and Invesco, have together drawn in $20.737 billion.
BlackRock’s iShares Bitcoin Trust (IBIT) stands out, attracting $35.883 billion in total inflows.
On average, IBIT has seen $153.3 million in daily investments since its launch, making it the top-performing spot Bitcoin ETF in the U.S.
Ethereum ETFs are showing similar trends. Grayscale’s Ethereum Trust ETF (ETHE) has reported $3.5 billion in outflows since its launch in July.
In contrast, BlackRock’s iShares Ethereum Trust ETF (ETHA) and Fidelity’s Ethereum Fund (FETH) have performed well. ETHA has brought in $3.2 billion, while FETH has seen $1.4 billion in inflows.
A growing market
The cryptocurrency market is witnessing an unprecedented surge in investments. The past 10 weeks alone have brought in $20.3 billion, accounting for 45% of all inflows in 2024.
Regional data shows that inflows are coming from around the globe. The United States led with $3.1 billion in new investments last week, followed by Switzerland ($36 million), Germany ($33 million), and Brazil ($25 million).
The consistent growth in digital asset investment products highlights the increasing confidence in cryptocurrencies.
Bitcoin and Ethereum continue to lead the market, but interest in altcoins and new investment products, such as spot ETFs, shows how diverse the market has become.
As the year progresses, the record-breaking inflows signal that digital assets are becoming a more significant part of global financial markets.
Whether for long-term gains or short-term speculation, cryptocurrencies remain a top choice for investors worldwide.
