The enthusiasm for cryptocurrency investments continues unabated, with Bitcoin reaching new heights and crypto investment products marking their tenth consecutive week of inflows. According to the latest data from CoinShares, digital asset investment products experienced another substantial week of inflows, totaling $3.2 billion for the trading week of December 9–13.
Continuation of a Strong Inflow Trend
This recent inflow follows a record-setting week that saw $3.85 billion in inflows, bringing the total for 2024 to an impressive $44.5 billion. Since the beginning of October, there has been a marked increase in investment, with the last ten weeks alone accounting for $20.3 billion—nearly 45% of the year’s total inflows.
Bitcoin investment products led the charge this past week, attracting $2 billion in inflows. Since the United States presidential election, these products have amassed $11.5 billion in total inflows. James Butterfill, CoinShares’ head of research, noted significant activity even in short Bitcoin products, which saw an increase of $14.6 million over the previous week. Despite this, total assets under management for short BTC exchange-traded products (ETPs) remain relatively modest at $130 million.
The iShares Bitcoin Trust ETF by BlackRock was the primary driver of these inflows, contributing an impressive $2 billion. Conversely, Grayscale’s Bitcoin Trust experienced outflows totaling $145 million during the same period.
Ether Maintains Strong Inflow Momentum
Ether, ranking second only to Bitcoin in market capitalization, also posted significant gains in investment products. Ethereum-based ETPs recorded $1 billion in inflows, marking their seventh consecutive week of positive inflows. Throughout this period, Ether ETPs have seen a total of $3.7 billion in new investments.
| Country | Inflows (Last Week) | Cumulative Inflows (2024) |
|---|---|---|
| United States | $3.1 billion | $23.5 billion |
| Switzerland | $35.6 million | $320 million |
| Germany | $33 million | $295 million |
| Sweden | -$19 million | $75 million |
Investor confidence in cryptocurrencies, particularly in structured products like ETPs, indicates a maturing market that increasingly appeals to both retail and institutional investors. The sustained influx of capital into crypto markets, especially during a period of global economic uncertainty, underscores the sector’s resilience and growing acceptance.
Author’s Opinion
The persistent inflow into cryptocurrency investment products throughout 2024 speaks volumes about the enduring appeal and growing legitimacy of digital assets. As traditional financial markets face ongoing challenges, cryptocurrencies are increasingly viewed not just as speculative investments but as viable alternatives for portfolio diversification. This shift is significant as it not only reflects a broadening investor base but also underscores the potential of digital assets to redefine investment strategies in the coming years.
