In the seventh consecutive week of growth, digital asset investment products attracted substantial inflows, reaching a noteworthy $1 billion. This achievement, highlighted in a report by CoinShares, positions the year-to-date (YTD) inflows at $1.14 billion, marking the third-highest annual inflow on record.
Market Growth and Liquidity Drive Asset Under Management (AuM)
The overall market expansion and consistent liquidity inflows into crypto funds over recent weeks have contributed to a significant uptick in total assets under management (AuM). CoinShares reported a 9.6% increase in AuM in the last week alone, marking a staggering 99% surge since the beginning of the year.
At the reporting period’s conclusion, the total AuM for cryptocurrency-related investment products surpassed $40 billion. This milestone underscores the growing interest and confidence in digital assets as a viable investment.
Global Inflows Dominated by Key Regions
Regionally, the majority of last week’s inflows into crypto funds originated from key markets, including Canada, the United States, Germany, and Switzerland. Inflows from these regions amounted to $106 million, $81 million, $53 million, and $50 million, respectively.
Bitcoin-backed investment products led the way with inflows totaling $240 million last week, representing a substantial 82% of the overall inflows during that period. This propelled Bitcoin‘s YTD inflows to $1.08 billion, indicating a noteworthy 19% increase from the previous week.
BTC ETP Trading Volume Significantly High
During the observed week, BTC Exchange-traded products (ETP) trading volumes accounted for 19.5% of the total BTC trading volumes on reputable exchanges. This notable increase suggests heightened participation from ETP investors in the current market rally compared to previous years.
Ethereum (ETH) showcased a robust performance, recording an inflow of $49 million last week. This surge, marking a 172% increase from the previous week, is attributed to Ethereum’s heightened activity, potentially linked to a recent spot-based ETF listing request in the U.S. Solana also experienced increased inflows, totaling $12 million.
The crypto market’s sustained growth and investor enthusiasm underscores a robust trajectory, with Bitcoin and Ethereum leading the way in attracting significant investment.