For the initial three days of this year, digital asset investment products garnered a total of $585 million. However, during the full week, which included the final two trading days of 2024, there were net outflows amounting to $75 million. On a global scale, the end of 2024 saw a historic high of $44.2 billion flowing into these investment products.
The current figure, which is almost quadruple the prior record of $10.5 billion established in 2021, has been achieved even as cryptocurrency prices tumbled towards the end of the year.
Bitcoin Leads with $38B Inflows in 2024
Based on CoinShares’ inaugural ‘Digital Asset Fund Flows Weekly Report’ from 2025, this surge was predominantly fueled by the debut of spot-based ETFs in the U.S., responsible for all inflows totaling $44.4 billion, making up 100% of the investment.
In other nations like Switzerland, there were investments worth approximately $630 million flowing in. On the flip side, substantial amounts – $707 million from Canada and $682 million from Sweden – moved out. This outflow was counteracted by investors’ preference for U.S. investment options or decisions to cash out their profits.
In 2024, Bitcoin ruled the market with a $38 billion inflow, making up approximately 29% of total assets under management (AuM). Additionally, short-Bitcoin investment products saw an increase of $108 million, although this was slightly less than the $116 million recorded in the previous year.
Towards the year-end, Ethereum experienced a robust recovery, attracting approximately $4.8 billion in investments. This accounted for about 26% of its Assets Under Management (AUM). Remarkably, this was more than double the inflows recorded in 2021 and an astounding 60 times greater than the influx seen in 2023.
As an analyst, I’d rephrase it like this: In terms of my analysis, Solana drew in just $69 million, which accounts for only 4% of our Assets Under Management (AuM). On the other hand, when considering altcoins excluding Ethereum, we saw inflows amounting to a significant $813 million, representing around 18% of our total AuM.
Bitcoin Stares At “Heft Sell Wall”
2021 started off with Bitcoin experiencing a temporary surge from buyers following a rather quiet December. This positive trend continued at the beginning of the week, momentarily pushing the digital currency above $99,800. Bitcoin now seems to be approaching the significant milestone of $100,000, which QCP Capital refers to as a substantial barrier due to increased selling pressure observed in December.
Initially exceeded on December 5 and leading to a spike in funding rates over 60%, QCP Capital has reported that the current funding levels are holding steady, diminishing the prospect of an immediate short squeeze. In contrast to December’s market surge, it seems less likely for significant triggers – like Trump-related events – to occur until after his inauguration on January 20.
Moreover, the volatility on the frontend side has remained “mild” and has shown a roughly balanced sentiment, as suggested by its neutral skew.
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2025-01-06 23:31