Ethereum’s Streak of Inflows Continues: $1 Billion in 1 Week

As a seasoned researcher with over two decades of experience in the financial markets, I must say that the current momentum in the cryptocurrency space is nothing short of remarkable. The consistent inflows into Ethereum and other digital assets are a testament to the growing maturity and acceptance of this new asset class.

For the past seven weeks straight, there have been continuous inflows into Ethereum, totaling approximately $3.7 billion during this time frame, and a significant $1 billion was added just last week.

This highlights improving investor sentiment toward the world’s second-largest cryptocurrency.

The Market: Zooming Out

As an analyst, I’ve been closely examining the latest CoinShares’ Digital Asset Fund Flows Weekly Report, and here’s what it reveals: Last week, we witnessed a significant inflow of digital assets totaling approximately $3.2 billion. This marks the 10th consecutive week of positive growth, which has collectively driven inflows this year to an astounding $44.5 billion – more than four times greater than any previous year.

As an analyst, I’ve noticed that Exchange-Traded Products (ETPs) have been consistently trading around $21 billion per week, accounting for a significant 30% of Bitcoin trades on reliable exchanges. Compared to this, the daily trading volume of Bitcoin across all investment types on trusted platforms this year averaged a substantial $8.3 billion. Remarkably, this is double the daily trading volume of the FTSE 100.

As a researcher, I find it intriguing to note that Bitcoin investment products added an impressive $2 billion to the weekly inflows, bringing the total since the US election to a staggering $11.5 billion. Despite recent price surges, short Bitcoin products managed to gain $14.6 million, albeit with assets under management (AuM) in this category remaining relatively modest at approximately $130 million.

XRP Sees Renewed Interest

Following Ethereum, XRP recorded the largest surge among altcoins, attracting approximately $145 million in investments as anticipation grew for a US-listed ETF. Additionally, the upcoming launch of Ripple‘s newly approved NYDFS stablecoin, RLUSD, may have played a role in fueling this trend.

Following Litecoin, there were investments totaling approximately $2.2 million over the last week. This was followed by Cardano at around $1.9 million and Solana with roughly $1.7 million. Furthermore, Binance Coin and Chainlink each received about $0.7 million in investments. Conversely, multi-asset investment products experienced another decline, losing around $31 million during the same timeframe.

Over the past week, there was a general increase in investments across all regions. The United States led the way with an impressive inflow of $3.14 billion. Following close behind were Switzerland with $35.6 million and Germany with $32.9 million. Brazil also experienced substantial inflows totaling $24.7 million, while Hong Kong, Canada, and Australia added $9.7 million, $4.9 million, and $3.8 million respectively to the positive trend. On the other hand, Sweden recorded outflows of $19 million.

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2024-12-16 18:50