Digital asset year-to-date inflows reach an unprecedented peak of $10.8 billion, surpassed by Bitcoin's value exceeding $111,000, according to CoinShares' latest report.
Digital asset funds experienced a surge of $3.3 billion in inflows last week, bringing the year-to-date total to a record-breaking $10.8 billion, according to a recent report by CoinShares. This marks the sixth consecutive week of positive flows for digital asset investment products.
The latest CoinShares digital asset fund weekly report revealed that both year-to-date flows and total assets under management reached historic peaks in the previous week. The $3.3 billion inflow last week accounted for the majority of the funds, with the U.S. contributing as much as $3.2 billion.
Other countries, such as Germany, Australia, and Hong Kong, saw relatively modest capital inflows compared to the U.S., totaling $41.5 million, $10.9 million, and $33.3 million, respectively. On the other hand, Swiss investors experienced outflows of $16.6 million, followed by Sweden and Brazil with $12.1 million and $1.9 million, respectively.
The increasing trend in digital asset inflows can partially be attributed to concerns over the U.S. economy. The Moody's downgrade and the resulting spike in treasury yields have driven investors to seek diversification through digital assets, James Butterfill, CoinShares head of research, stated.
Bitcoin, the dominant cryptocurrency, saw inflows of $2.9 billion, accounting for 25% of the total inflows achieved in 2024. Ethereum recorded $326 million in inflows, marking the cryptocurrency's fifth consecutive week of gains and its highest recorded amount in the past 15 weeks. In contrast, XRP experienced a break in its 80-week-long inflow streak, with $37.2 million in outflows, its largest ever recorded for XRP.
The ongoing rally that has catapulted the price of Bitcoin to a new all-time high of $111,814 has encouraged investors to invest in short-Bitcoin products. In the past week, short-Bitcoin saw $12.7 million in flows, its highest recorded weekly inflow since December 2024.
The significant increase in digital asset fund inflows highlights a growing trust in digital assets among investors. The U.S. continues to play a significant role in the global digital asset market, contributing the largest share of inflows. Institutional acceptance of cryptocurrencies as a legitimate asset class is further supported by the strong performance of Bitcoin and renewed interest in Ethereum.
- The digital asset, Bitcoin, recorded inflows of $2.9 billion, accounting for 25% of the total inflows achieved in 2024.
- Ethereum, the cryptocurrency, saw $326 million in inflows, marking the cryptocurrency's fifth consecutive week of gains and its highest recorded amount in the past 15 weeks.
- On the other hand, XRP experienced a break in its 80-week-long inflow streak, with $37.2 million in outflows, its largest ever recorded for XRP.
- The significant increase in digital asset fund inflows highlights a growing trust in digital assets among investors.
- Institutional acceptance of cryptocurrencies as a legitimate asset class is further supported by the strong performance of Bitcoin and renewed interest in Ethereum. Additionally, the U.S., with its substantial inflows, plays a significant role in the global digital asset market.
