Inflows into global cryptocurrency investment products have quadrupled so far this year: The CoinShares

According to CoinShares, international cryptocurrency funds managed by asset managers like BlackRock, Bitwise, Fidelity, Greyscale, ProShares, and 21Shares had net inflows of $3.2 billion for the tenth consecutive week.

According to a research released on Monday by CoinShares Head of Research James Butterfill, the positive flows also push the year-to-date total to a new record of $44.5 billion, more than quadrupling that of any previous year.

"ETPs account for 30% of the bitcoin traded on reliable exchanges, with weekly trading volumes averaging $21 billion," Butterfill continued. With an average daily volume of $8.3 billion this year, which is double the FTSE 100, Bitcoin volumes on reliable exchanges (for all investment kinds) are extremely liquid.

weekly flows of cryptocurrency assets. Pictures: CoinShares.

Weekly inflows into US spot Bitcoin ETFs total $2.2 billion.

The Block collated data showing that the 12 U.S. spot Bitcoin exchange-traded funds saw net inflows of $2.17 billion last week alone. The funds' winning run now stands at $5.3 billion after 12 trading days, or 15% of the $35.8 billion in net inflows they have produced since their January inception.

"With over $2 billion in inflows recorded last week, demand for Bitcoin ETFs has been unrelenting," analysts at research and broking firm Bernstein stated in a note to clients on Monday. “Bitcoin ETF inflows have topped $2 billion for seven of the past nine weeks.”

Overall, U.S.-based funds likewise had a dominant position, with net inflows of $3.14 billion marginally offset by net withdrawals of $19 million from Swedish crypto investment products. Important weekly net inflows of $35.6 million, $32.9 million, and $24.7 million, respectively, were also recorded by funds in Switzerland, Germany, and Brazil, indicating generally favourable attitude, according to Butterfill.

According to Butterfill, since pro-crypto Donald Trump won the election, bitcoin-based funds have had net inflows of $2 billion globally, increasing the total to $11.5 billion. Higher prices, however, also led to an additional $14.6 million in inflows into short-bitcoin instruments.

In the meantime, despite a "dramatic improvement in sentiment," Ethereum-based funds had net inflows for the seventh week in a row, adding an additional $1 billion to a total of $3.7 billion for the period, according to Butterfill.

According to data provided by The Block, the U.S. spot Ethereum ETFs contributed $854.8 million to this amount last week, extending their own winning streak to 15 trading days totalling $2.25 billion.

According to the Bernstein analysts under Gautam Chhugani, "Ethereum ETF inflows have exceeded $800 million/week since the last two weeks, reflecting an accelerating trend."

As expectations for an ETF in the United States grow, XRP investment products also witnessed net inflows of $145 million last week. Inflows of $3.7 million and $2.2 million were generated by Polkadot and Litecoin-based funds, respectively.

Bitcoin's highest points ever

Late on Sunday, the price of bitcoin hit a fresh all-time high of over $106,600 before falling. According to The Block's Bitcoin Price Page, the leading cryptocurrency is now trading for $104,514, having increased 54% in less than six weeks since the U.S. elections and around 150% year-to-date.

According to blockchain explorer Mempool, the difficulty of mining bitcoin also hit a new all-time high of 109 trillion early Monday, up 4.4% amidst record average hash rate levels for the network.

"ETH's increasing momentum and massive ETF inflows could signal the onset of a broader altcoin Santa rally, as BTC consolidates above $100,000," Mena Theodorou, co-founder of Coinstash, stated. "The conditions to support potential growth in the crypto market are extremely favourable, especially when combined with the pro-crypto Trump administration, easing inflation, and a likely rate cut by the Fed."

After rising 113% in 2024, the GMCI 30 index, which is a compilation of the top 30 cryptocurrencies, has been trading flat for the past week.

Disclaimer: News, analysis, and data are provided by The Block, an independent media source. As of November 2023, the bulk of The Block's investors are Foresight Ventures. Foresight Ventures makes investments in other cryptocurrency-related businesses. Bitget, a cryptocurrency exchange, serves as Foresight Ventures' anchor LP. The Block is still running on its own to provide timely, relevant, and unbiased information regarding the cryptocurrency market. Our most recent financial disclosures are listed here.

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