Bitcoin Investments Soar with Inflows of $519 Million, Ethereum Records Outflows of $284.9 Million
Last week, digital asset investment products saw a relatively modest inflow of $245 million, indicating varied performance across different digital assets. Despite this, trading volumes surged to $14.8 billion, the highest since May, driven by recent launches of Ethereum ETFs. The price appreciation pushed total assets under management (AuM) to $99.1 billion, with year-to-date (YTD) inflows hitting a record $20.5 billion.
Bitcoin took the lead with strong inflows of $519 million, bringing its month-to-date (MTD) inflows to $3.6 billion and YTD inflows to a record $19 billion. This increase is linked to comments during the US elections that positioned Bitcoin as a potential strategic reserve asset and the anticipation of a Federal Reserve rate cut in September 2024.
Conversely, Ethereum faced significant outflows of $284.9 million last week. However, its MTD inflows stood at $877.1 million, signaling positive sentiment overall. Multi-asset funds received moderate inflows of $8.7 million, while Solana saw a minor outflow of $2.7 million. Other assets like Litecoin, XRP, Cardano, Chainlink, and Short Bitcoin experienced small inflows ranging from $0.3 million to $2.5 million. Despite recent outflows, “Short Bitcoin” saw a notable YTD inflow of $47 million.
The launch of US spot-based Ethereum ETFs triggered substantial market activity, marking the largest inflows since December 2020. Grayscale Investments LLC/U faced significant weekly and YTD outflows, indicating a shift in investor sentiment. iShares ETFs/USA led with the highest weekly inflow of $1.2 billion and a YTD inflow of $20 billion. Fidelity ETFs/USA also reported robust inflows across all time frames, including a weekly inflow of $30 million.
Providers like 21Shares AG and ARK 21 Shares/USA attracted moderate inflows, with YTD inflows of $21 million and $2.6 billion, respectively. Bitwise ETFs/USA saw positive YTD inflows of $2.1 billion, showing moderate investor interest. On the other hand, CoinShares XBT and Purpose Investments Inc ETFs experienced outflows, with YTD outflows of $378 million and $450 million, respectively.
In regional metrics, the United States led in all aspects, with the highest weekly inflow of $272 million, MTD inflows of $4.3 billion, and YTD inflows of $20.7 billion, holding the largest AuM at $76 billion. Germany faced significant outflows, with a weekly outflow of $59.6 million, MTD outflow of $75.5 million, and YTD outflow of $325 million.
Canada showcased positive weekly and MTD inflows despite a YTD outflow of $489 million. Switzerland reported strong inflows, particularly MTD inflows of $189.7 million, reflecting positive sentiment. Australia, Brazil, and Hong Kong experienced positive inflows, while Sweden faced outflows. Other regions contributed moderate inflows, enhancing market diversity.
It is important to note that this content is for informational purposes only and should not be considered financial advice. Readers are advised to conduct thorough research before making any investment decisions.
