Crypto ETPs hit $44.5b in YTD inflows amid Bitcoin surge

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As a seasoned analyst with over two decades of experience in the financial market, I must say that the recent surge in digital asset investment products is nothing short of remarkable. The inflow of $3.2 billion in just a week is a testament to the growing interest and acceptance of these assets by mainstream investors.

Over the last seven days, there has been a substantial increase in the demand for digital asset investment products, as an additional 3.2 billion dollars flowed into these markets by eager investors.

According to CoinShares’ weekly report, the total amount invested in cryptocurrency exchange-traded products has now surpassed $44.5 billion for the year so far. This marks the tenth straight week of positive inflows into these investment products.

As reported by CoinShares, inflows into cryptocurrency Exchange-Traded Products (ETPs) have seen a staggering 300% increase compared to any other year. Furthermore, the year 2024 saw a quadruple surge in inflows, enabling an average weekly volume of approximately $21 billion. It’s worth noting that nearly one third (around 30%) of this ETP volume has been invested in Bitcoin exchange-traded funds on leading stock exchanges.

According to James Butterfill, the chief researcher at CoinShares, the daily trading volume of Bitcoin on reliable exchanges (including all investment types) has been exceptionally high this year, averaging around $8.3 billion per day. This figure is twice as large as the daily trading volume for the FTSE 100.

Bitcoin records $2 billion in weekly inflows

As a crypto investor, I’ve noticed a significant increase in funds flowing into digital asset investments, all while Bitcoin (BTC) hovered around the psychologically important $100k mark. Excitingly, BTC didn’t stop there and managed to reach a new peak above $106k.

Over the last seven days, Bitcoin exchange-traded products (ETPs) have received investments amounting to approximately $2 billion. Since the U.S. election, there has been an influx of $11.5 billion into Bitcoin ETPs, bringing their total managed assets above $135 billion. At this moment, the combined value of all global investment products based on digital assets was slightly over $167.4 billion, as reported on December 13.

According to SoSoValue data, Bitcoin ETFs have collectively received approximately $35.6 billion in net investments up until December 13th. Since their launch on U.S. stock exchanges, the total value traded has surpassed $3.1 billion. Among all these Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust has attracted the most significant inflows of funds.

Ethereum, XRP also see inflows

In the upcoming year, it’s anticipated that Ethereum (ETH) will outpace Bitcoin (BTC) in terms of ETF investments. For the last seven weeks, Ethereum has experienced continuous positive investment inflows, with a staggering $1 billion added just last week and a total of $3.7 billion during this timeframe.

Last week, the popular digital currencies XRP, Polkadot, and Litecoin saw significant investments. XRP recorded inflows of approximately $145 million, while Polkadot and Litecoin products drew in around $3.7 million and $2.2 million respectively.

Interest in XRP has grown among institutional investors since Donald Trump’s victory, and experts anticipate that the U.S. Securities and Exchange Commission may approve an XRP Exchange Traded Fund (ETF). Analysts have suggested that Ripple‘s introduction of its dollar-backed stablecoin, RLUSD, could further boost XRP as global adoption of cross-border payments gains traction.

The prices of these alternative cryptocurrencies have been on the rise during the last few weeks, and Bitcoin’s surge has even affected crypto-related stocks like MicroStrategy.

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2024-12-16 15:34