Last week, digital asset investment products saw their highest weekly inflows ever, amounting to $3.85 billion.
According to CoinShares, the inflows to the digital asset investment products touched a record high of $3.85 billion last week, driving the yearly intake to $41 billion thus far. This figure exceeds the prior recent high of $2.7 billion, signifying a historic period of investor confidence in the market.
Bitcoin
BTC0.11%Bitcoin continues to be the top asset, pulling in $2.55 billion of inflows. The positive flows in Ripple
XRP5.16%XRP and Litecoin indicate a broad allocation of capital across digital assets. Ethereum experienced its largest weekly inflow year-to-date at $1.2 billion. In comparison, $14 million in capital flowed out from Solana
SOL0.88%Solana, reflecting a shift in focus among investors. Blockchain equities, on the whole, also saw $124 million in inflows, which is the highest since January.
Region-wise, the U.S. continued its dominance in total inflows at $3.57 billion, followed by Switzerland at $159.5 million. Total assets under management across digital asset investment products now amount to $165 billion as a result of the new inflows.
Crypto boom as Trump’s popularity on the rise
The massive momentum the crypto market is witnessing is likely due to two major events. President-elect Donald Trump has appointed venture capitalist David Sacks as the first-ever White House AI and crypto czar, a part of his strategic push to make the U.S. the global leader in cryptocurrency innovation.
Sacks will be tasked with making rules and crafting laws for both AI and crypto, as well as chairing the Presidential Council of Advisors for Science and Technology. Another reason is Federal Reserve Chair Jerome Powell’s support for BTC. On Dec. 5, Powell said that BTC is deemed as a competitor for gold, not the dollar, at DealBook Summit 2024.