Digital asset investment products have attracted net inflows of $5.95 billion last week, which is the highest weekly total ever, according to CoinShares’ latest report. The increase in demand was mainly due to Bitcoin, which was the subject of inflows of $3.55 billion, followed by Ethereum with $1.48 billion. Apart from these, the best performers were Solana with $706.5 million in inflows and XRP with $219.4 million.
Experts link the inflows to the combination of several macroeconomic factors, such as soft job market data in the U.S., the reaction of investors to the FOMC interest rate cut, and the apprehension of the stability of the U.S. government. The positive market momentum further propelled the assets under management (AuM) to reach a new record of $254 billion.
The inflows were geographically led by the United States, which captured $5 billion or six times the previous weekly record (shortest week with FOMC meeting), while regionally the largest outflows were observed in Europe and Asia. In particular, Switzerland broke its previous weekly inflows record with $563 million, and Germany recorded its second-largest weekly inflows at $312 million.
The diversity of the inflows points to the fact that interest in digital assets remains strong across developed markets, irrespective of their geographical location. The strongest demand for crypto is still coming from those regions that have stringent regulations and well-established crypto investment products.
Bitcoin led the inflows for the week with $3.55 billion, its highest-ever weekly intake, marking a new record. Over the period, while the prices were approaching their all-time highs, investors were mostly positioning long exposure in investment products rather than short ones.
After that, Ethereum got $1.48 billion of fresh money, giving the total of inflows YOY to $13.7 billion, which is almost three times more than last year’s total. Solana also surpassed the previous record of weekly inflows and set a new YTD total of $2.58 billion. Moreover, XRP collected $219.4 million, and the rest of the altcoins barely moved.
According to CoinShares’ report, the inflows seen here are a delayed market reaction to the macroeconomic signals as well as a growing trust in regulated crypto investment products. The all-time-high inflows in major digital assets across regions are the biggest indication of institutional and retail investors’ alluring cryptocurrencies as a fresh source of diversification in their portfolios.
