As a seasoned researcher who has witnessed the rapid evolution of digital currencies over the past decade, I must say that the recent surge in crypto investment products is nothing short of extraordinary. The record-breaking inflows we’ve seen this week are a testament to the growing mainstream acceptance and confidence in cryptocurrencies like Bitcoin and Ethereum.
Investment in cryptocurrency products reached a fresh high, with Bitcoin soaring above $100,000 mark for the first occasion.
During the week of December 2nd to 6th, digital asset investment products experienced a historic surge in investments, as a staggering $3.85 billion was poured in, based on data from a report published by the cryptocurrency investment firm, CoinShares.
The latest crypto investment milestone comes just a few weeks after crypto investment products smashed the previous record of $3.12 billion in November when Bitcoin (BTC) traded at around $98,000.
As an analyst, I observed a significant surge in crypto inflows last week, which interestingly aligned with Bitcoin’s historic break above $100,000 for the first time on December 5, peaking at an unprecedented level of $104,000.
Bitcoin leads with $2.5 billion in inflows
Last week, as Bitcoin prices reached record heights, Bitcoin investment products accounted for the largest weekly inflow of cryptocurrency with approximately $2.5 billion. This brings the total year-to-date inflows to an impressive $36.5 billion.
Last week saw reduced activity among short-term Bitcoin investors, as only $6.2 million flowed into short BTC financial products, indicating a relatively low level of engagement.
Historically, significant increases in inflows have followed steep price surges, indicating that investors are still wary about going against the current strong market trend, according to James Butterfill, the head of research at CoinShares.
Ethereum ETPs see the largest weekly inflows on record
Last week, Ethereum, the cryptocurrency that ranks second in market cap behind Bitcoin, set fresh investment records. This surge was fueled by Ether’s price soaring above $4,000 on December 6th.
Last week, Ethereum investment products attracted a record-breaking $1.2 billion, as reported by CoinShares – this is the largest weekly inflow since the first U.S.-based Ethereum exchange-traded funds (ETFs) began trading back in July 2024.
Investments in Ethereum ETFs experienced a significant increase, causing a decrease of approximately $14 million in Solana investments. This was pointed out by Butterfill, who also mentioned that Solana-related products experienced two weeks straight of investment withdrawals.
Moreover, blockchain stocks have experienced an influx of approximately $124 million, marking the largest such flow since January of this year, due to increasing investor faith in enhancing profit margins among Bitcoin miners, as per Butterfill’s statements.
2024 marked a significant surge for cryptocurrency exchange-traded funds (ETFs), with the momentum starting from the groundbreaking launch of U.S.-based spot Bitcoin ETF trading in January.
For the first time on December 6th, the total Bitcoin ETF holdings collectively exceeded a significant milestone of 1.1 million Bitcoins, outnumbering the Bitcoins owned by the mysterious creator of Bitcoin, Satoshi Nakamoto.
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2024-12-09 14:17