Tuesday, 02 January 2024 12:17 GMT

Cryptocurrency Funds See $864M Inflows As US Drives Market Surge


(MENAFN- Crypto Breaking) Crypto Investment Products See Continued Growth with $864 Million Inflows

Last week, crypto exchange-traded products (ETPs) experienced approximately $864 million in inflows, signaling growing investor confidence amidst fluctuating market conditions. The United States led the regional inflows, accounting for roughly $796 million, with Germany and Canada contributing an additional $68.6 million and $26.8 million respectively. These three nations represent nearly 99% of the total year-to-date inflows into digital asset investment vehicles, highlighting regional disparities and investor focus on North American markets.

While some Swiss-listed crypto ETPs faced outflows totaling around $41.4 million for the week, their net flows for the year remained strongly positive at approximately $622.4 million, illustrating sustained investor interest despite short-term fluctuations. This week's broader trend marks the third consecutive week of inflows, with previous weeks seeing inflows of $716 million and nearly $1 billion respectively, underscoring renewed optimism in the sector.

Bitcoin and Ether Lead in Weekly Capital Flows

Bitcoin investment products attracted about $522 million in the latest week, with short-Bitcoin products experiencing approximately $1.8 million in net outflows. This indicates a cautiously optimistic sentiment shift among traders and institutional investors. Meanwhile, Ethereum -based products saw inflows of roughly $338 million, boosting the total year-to-date inflow to approximately $13.3 billion – a staggering 148% increase from the same period last year.

Other major cryptocurrencies also drew investor attention. Solana recorded weekly inflows of around $65 million, bringing its year-to-date totals to approximately $3.46 billion, reflecting a tenfold increase over last year. XRP similarly attracted capital, with weekly inflows near $46.9 million, pushing its cumulative YTD inflows to about $3.18 billion.

Smaller-cap assets presented mixed results. Aave-linked products saw weekly inflows of $5.9 million, while Chainlink added around $4.1 million. Conversely, Hyperliquid products experienced net outflows of approximately $14.1 million, revealing a cautious approach by some investors regarding lesser-known assets.

Overall, Bitcoin remains the dominant asset in digital asset portfolios, with assets under management reaching about $141.8 billion, compared to $26 billion for Ether. Despite the recent inflows, total Bitcoin ETF holdings are below the $200 billion mark, highlighting the ongoing growth trajectory but also the need for continued confidence restoration among investors.

Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk. Don't invest unless you're prepared to lose all the money you invest.

MENAFN15122025008006017065ID1110484610



Crypto Breaking

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

Search