Last week's digital asset investment products recorded $245 million in inflows, showing a mixed picture across various digital assets. Trading volumes peaked at $14.8 billion, the highest since May, driven by Ethereum ETF launches. The total assets under management (AuM) reached $99.1 billion, with year-to-date (YTD) inflows hitting a record-breaking $20.5 billion.

Bitcoin Continues to Attract Strong Inflows

Bitcoin continues to see robust investment activity, with $519 million in inflows last week. This brings Bitcoin's month-to-date inflows to $3.6 billion and YTD inflows to a record $19 billion. Analysts attribute this renewed investor confidence to US electioneering comments about Bitcoin as a potential strategic reserve asset and increased chances of a Federal Reserve rate cut in September 2024.

Ethereum ETF Launch Sees Mixed Results

The US launch of spot-based Ethereum ETFs generated significant inflows of $2.2 billion, marking one of the largest since December 2020. Trading volumes in Ethereum exchange-traded products (ETPs) surged by 542%. However, this impressive performance was offset by incumbent outflows.

Grayscale's new Mini Trust ETF, seeded with approximately $1 billion from its closed-end trust, contributed to these inflows. However, Grayscale’s incumbent trust experienced continued outflows of $1.5 billion as some investors chose to cash out, resulting in a net outflow of $285 million last week. This scenario mirrors the Bitcoin trust outflows seen in January 2024 ETF launches.

Overall Market Performance

Digital asset investment products saw $245 million in inflows last week, reflecting a nuanced market landscape. Despite these mixed results, trading volumes hit their highest levels since May, supported by the recent Ethereum ETF launches. The total assets under management (AuM) now stand at $99.1 billion, with YTD inflows setting a record at $20.5 billion.