Bitcoin Leads $2.2B Weekly Inflows as Crypto Investments Hit Record $33.5B

Crypto asset investment products saw robust inflows of $2.2 billion last week, with Bitcoin expectedly leading the way. This marks a major milestone, pushing year-to-date inflows to a record $33.5 billion. This influx follows an $11.7 billion rally since September, fueled by interest rate cuts and growing optimism surrounding crypto markets.  However, Bitcoin’s all-time price highs last week triggered mixed reactions, shaping market flows across regions and assets. Bitcoin Leading the Way for Investment Inflows Specifically, Bitcoin led the pack with inflows of $1.48 billion, benefiting from a price surge that broke previous all-time highs. The excitement drove total assets under management (AuM) to an unprecedented $138 billion earlier in the week.  However, as prices reached record levels, $866 million in outflows followed in the latter half of the week, reflecting profit-taking by investors. Interestingly, this price activity also spurred $49 million in inflows to short Bitcoin products, signaling hedging strategies among some investors. Ethereum Inflows Rebound Meanwhile, Ethereum-based investments rebounded strongly last week, securing $646 million in inflows, which accounted for 5% of their total AuM. This marks a recovery after weeks of muted activity. Analysts attribute Ethereum’s rebound to renewed enthusiasm surrounding Justin Drake's Beam Chain network upgrade proposal and the favorable market outlook post-US elections. Solana, XRP, and Other Assets Solana investment products continued their upward trend, securing $24 million in inflows, while XRP-based investments added $4.3 million, maintaining steady growth. Additionally, ETPs for Litecoin and Cardano saw modest inflows of $0.7 million and $3.4 million, respectively. In contrast, Binance Coin (BNB) and multi-asset products experienced negative flows last week, while Tron (TRX) saw no investment change.

Regional Sentiment: Mixed Signals Regional inflows were mixed last week. The United States dominated with $2.2 billion in inflows, reflecting strong institutional interest. Meanwhile, Hong Kong, Australia, and Canada saw more modest inflows of $27 million, $18 million, and $13 million, respectively. At the same time, profit-taking dampened activity in Europe, with Sweden and Germany recording outflows of $58 million and $6.8 million, respectively.