Digital Asset Investment Products See $2.2B Inflow Last Week

Over $2.2 billion in institutional investors poured into crypto products in the past week.

Key Notes

Crypto investments YTD inflow has crossed the $33 billion mark.Bitcoin continues to lead the charge, with Ethereum and Solana also featuring prominently.The macroeconomic policies of central banks might shift the trend in the coming weeks.

CoinShares recently reported that the digital asset investment market saw remarkable momentum, with $2.2 billion flowing into products last week. This surge brings the total inflows since the first interest rate cut in September to $11.7 billion. Year-to-date inflows have raked in a massive $33.5 billion.

Despite a late-week pullback due to Bitcoin’s all-time high (ATH), the overall market boom remains undeniable. This growth is fueled by evolving economic policies and global political shifts. This surge follows the $1.2 billion reported in September, further highlighting the market’s robust growth.

Digital Asset Investments and Bitcoin Showoff

The week started with a notable $3 billion flowing into digital assets, largely driven by Bitcoin’s strong performance. As Bitcoin’s price BTC $90 804 24h volatility: 0.6% Market cap: $1.80 T Vol. 24h: $62.83 B surged to new price heights, it attracted significant investor attention.

This led digital investment products to an increase in Assets Under Management (AUM). These assets hit a record $138 billion at one point, reflecting the growing confidence in digital assets, particularly Bitcoin.

However, this positive momentum lasted only a short time throughout the week. As Bitcoin price rose, many investors saw it as an opportunity to lock in profits. The sharp increase in Bitcoin’s price prompted some to sell off their holdings, resulting in $866 million in withdrawals from digital asset investments in the latter half of the week. This shift in behavior illustrates how quickly investor sentiment can change, even when Bitcoin is at an all-time high.

Ethereum also made significant strides. Its digital products saw inflows of $646 million, amounting to 5% of its AUM. This turnaround in sentiment can be linked to the recent Ethereum network upgrades. The surge was partly driven by Ethereum researcher Justin Drake’s Beam Chain upgrade proposal.

Also, the favorable outcome of the recent US elections propelled the surge. These events helped Ethereum recover some of the momentum it had lost earlier in the year.

Meanwhile, other altcoins like Solana also enjoyed a modest but meaningful boost. Solana saw $24 million in inflows. This and the overall bullish market trend show that the digital asset space is diversifying. Investors are seeking high-income assets beyond Bitcoin and Ethereum.

Regional Inflows and Outflows

While the global sentiment towards digital assets remains optimistic, regional activity tells a more mixed story. The US led the charge, seeing $2.2 billion in inflows last week. Hong Kong, Australia, and Canada also contributed, with respective inflows of $27 million, $18 million, and $13 million.

However, not all regions shared this enthusiasm. In Europe, Sweden and Germany saw outflows of $58 million and $6.8 million, respectively. This was because investors in these countries took profits amid the market’s volatility.

Beyond the crypto market, the recent surge in digital asset investments is driven by looser monetary policies. Adding to the market excitement are the interest rate cuts and expectations of favorable economic conditions now that Donald Trump is set to take back the White House.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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