Digital asset investment products have seen inflows of $2.2 billion last week, totalling to a record-breaking $29.2 billion in 2021, according to CoinShares’ latest report. This strong performance and recent Bitcoin price increases around $70,000 have pushed the sector’s total assets under management (AuM) above $100 billion for the second time.
These levels were last seen in early June 2024, when AuM reached $102 billion. Meanwhile, the increase in assets has spurred a surge in trading activity, with weekly trading volumes climbing 67% to $19.2 billion, representing 35% of all Bitcoin trading on leading, reliable exchanges. The recent surge in digital asset investment is attributed to investor optimism ahead of the impending US elections between former US president Donald Trump and Vice President Kamala Harris.
Bitcoin leads with record inflows, capturing nearly all last week’s inflows, totalling $2.2 billion. US-listed Bitcoin ETFs mainly saw strong interest, with $2.22 billion in net inflows – the third-largest weekly inflow on record. BlackRock’s IBIT ETF led the pack, pulling in $2.2 billion. Fidelity’s FBTC followed, with around $90 million in inflows.
This shows that crypto ETFs continue to attract strong interest, as assets in these funds have grown rapidly and reached about half the level of gold ETFs in a relatively short period. Despite the solid positive sentiments in the market, Ethereum-related products saw modest inflows, totalling $9.5 million last week.
Solana, Polkadot, and Arbitrum collectively had around $6.57 million in cumulative inflows. Ethereum’s modest inflows contrasted with the strong investor interest in Bitcoin and Solana.
