According to CoinShares Report: The digital asset market saw a surge in inflows last week, with total investments reaching $2.2 billion, bringing the year-to-date inflows to a record $33.5 billion. The strong market performance comes on the heels of the U.S. elections and looser monetary policy, signaling heightened institutional and retail interest in cryptocurrencies.
Bitcoin Dominates Inflows Amid Record-High Prices
Bitcoin led the inflows with $1.48 billion, reflecting sustained investor confidence in the leading cryptocurrency. However, the recent all-time high in Bitcoin's price spurred some profit-taking, with $866 million in outflows during the latter half of the week.
Interestingly, $49 million flowed into short Bitcoin investment products, signaling mixed sentiment among investors navigating the volatile market.
Ethereum Rebounds with $646 Million Inflows
Ethereum broke out of its recent downturn with $646 million in inflows, representing 5% of its assets under management (AuM). Analysts attribute this rebound to the Beam Chain network upgrade proposal by Justin Drake and the broader optimism stemming from the U.S. elections.
Other altcoins also posted gains, with Solana seeing inflows of $24 million.
Regional Sentiment Reflects Mixed Trends
While the U.S. dominated with $2.2 billion in inflows, other regions like Hong Kong ($27 million), Australia ($18 million), and Canada ($13 million) also showed robust activity. However, Sweden and Germany witnessed profit-taking, with outflows of $58 million and $6.8 million, respectively.
Assets Under Management Hit Record $138 Billion
The recent inflows propelled total assets under management (AuM) in digital asset investment products to a new peak of $138 billion. This milestone reflects growing confidence in cryptocurrencies, buoyed by looser monetary policies and political developments like the Republican party's clean sweep in the recent U.S. elections.
Outlook for Digital Assets
The combination of institutional adoption, favorable regulatory sentiment, and technological advancements is expected to sustain momentum in the digital asset market. Bitcoin's milestone, Ethereum's rebound, and increasing interest in altcoins like Solana suggest that the market is primed for continued growth heading into 2025.
