Originally published on: December 09, 2024
Cryptocurrency investment products have reached unprecedented heights with a record-breaking $3.85 billion in inflows during the week of Dec. 2–6, fueled by Bitcoin’s surge past the $100,000 mark.
According to a report from CoinShares, digital asset investment products experienced their largest inflow volume to date, surpassing the previous record of $3.12 billion set in November. This milestone coincided with Bitcoin’s historic rally, propelling it to an all-time high of $104,000 on Dec. 5.
The surge in Bitcoin’s price last week drove $2.5 billion in inflows into BTC investment products, bringing the total year-to-date inflows to $36.5 billion. Meanwhile, Ethereum also made waves in the crypto investment scene as Ether surpassed $4,000, leading to $1.2 billion in weekly inflows for Ethereum products.
Short Bitcoin investors remained cautious amidst the bullish market sentiment, with tepid inflows of $6.2 million into short BTC products. CoinShares’ head of research, James Butterfill, noted that investors tend to show increased interest following significant price spikes, indicating a sentiment of reluctance to bet against the current upward momentum.
The surge in Ethereum investments came at the expense of Solana, which experienced $14 million in outflows for the second consecutive week. On the other hand, blockchain equities saw a notable influx of $124 million, the highest since January, driven by growing confidence in Bitcoin miner margins.
The rise of cryptocurrency ETFs in 2024, particularly following the introduction of spot Bitcoin ETF trading in the US, has contributed to the sector’s substantial growth. As of Dec. 6, Bitcoin ETF holdings exceeded 1.1 million BTC, surpassing even the holdings attributed to the mysterious Bitcoin creator, Satoshi Nakamoto.
With the crypto market showing no signs of slowing down, investors are poised to capitalize on the momentum and explore emerging opportunities in this dynamic space. Stay informed and stay ahead with critical insights from our Markets Outlook newsletter, delivering valuable perspectives to refine your trading strategies every Monday. Subscribe now and unlock the potential of the evolving cryptocurrency landscape.
