Crypto Inflows Hit New Weekly Record of $1.98B
In the week ranging from Nov. 3–9, crypto investment products attracted inflows of $1.98 billion, according to a new report from CoinShares. Such an inflow pushed global crypto assets under management to an all-time high of $116 billion. These latest inflows make up the fifth consecutive week of net positive investments, totaling $7.7 billion in 2024 thus far, which is roughly 24% of the year-to-date cumulative inflows of $31.3 billion. This is in respect of sustained investor confidence in digital assets, especially in the wake of conducive post-election conditions.
Bitcoin ETFs Drive U.S. Market Inflows
The report noted that the U.S.-based Bitcoin ETFs were dominating the week’s inflows and contributed the lion’s share of funds into crypto. Bitcoin alone saw inflows of $1.8 billion, buoyed mostly by the interest rate cuts from the U.S. Federal Reserve in September-the first such cut in four years. This development comes after investors have piled $9 billion into Bitcoin investment products since this policy shift. James Butterfill, the research director at CoinShares, says these inflows are largely a function of an improving macroenvironment, along with significant changes in the U.S. political environment, creating an even more positive investor tone toward digital assets.
Regional Inflows: U.S. Dominates
Inflows from the U.S., regionally, accounted for $1.95 billion of the lion’s share, while Europe trailed with a meager sum, with Switzerland and Germany investing $23 million and $20 million, respectively. On the other hand, Swedish investors bucked the broader trend with $25.7 million of outflows.
Record Inflows for Ether ETFs
While Bitcoin was the mainstay, Ether ETFs saw incredible inflows to their record high since their launch by adding as much as $157 million in the first days of November. This portrays a growing optimism in Ether, further corroborated by demand for Ethereum-based investment products. Away from the two largest digital assets, a suite of altcoins also attracted inflows, including Solana at $3.9 million, $1 million for Uniswap, and $0.5 million for Tron-this spread across a number of crypto assets.
Short-Bitcoin Products Witness Outflows
Interesting to note, while long Bitcoin products inflows hit the roof, short-Bitcoin products continued to witness outflows, at $2.7 mln. Probably expecting much higher prices as the price of Bitcoin surged to an all-time high above $80,000 on Nov. 10, the short-sellers reportedly started closing their positions.
Market Outlook and Investor Sentiment
The continued inflows at fresh record-high prices and improving investor sentiment are indicative of a bull run for crypto. Indeed, with supportive post-election dynamics combining with positive economic policies, demand for digital assets looks set to continue upwards.
