In a significant milestone for the cryptocurrency market, digital asset investment products saw their largest inflows on record, with $3.85 billion invested during the trading week of Dec. 2–6, according to a report by crypto investment firm CoinShares.
Historic Inflows Coincide with Bitcoin Breaking Above $100,000
The latest crypto investment milestone came just a few weeks after crypto investment products smashed the previous record of $3.12 billion set in November when Bitcoin (BTC) traded at about $98,000. The new high in weekly crypto inflows coincided with Bitcoin breaking above $100,000 for the first time on record on Dec. 5, reaching an all-time high of $104,000.
Bitcoin Leads with $2.5 Billion in Inflows
Coinciding with the Bitcoin price hitting new highs last week, BTC investment products led total crypto weekly inflows with $2.5 billion, bringing year-to-date inflows to $36.5 billion. Short Bitcoin investors were less active last week, with short BTC products seeing tepid inflows of $6.2 million.
Flows by Assets (in millions of US dollars)
| Asset | Weekly Inflows (millions) |
| — | — |
| Bitcoin (BTC) | 2500 |
| Ethereum (ETH) | 1200 |
| Blockchain Equities | 124 |
CoinShares’ Head of Research Weighs in on Market Trends
Historically, we have seen much higher inflows after sharp price rises, suggesting investors remain cautious on betting against the recent strong momentum,’ CoinShares’ head of research, James Butterfill, wrote in the update.
Bitcoin’s Dominance in Crypto Investment
Bitcoin has consistently been the leading cryptocurrency in terms of investment, with its dominance in the market reflecting its widespread adoption and use cases. The recent surge past $100,000 is a testament to its continued growth and potential for long-term gains.
Ethereum ETPs See Largest Weekly Inflows on Record
Ethereum, the second-largest blockchain network in terms of market capitalization after Bitcoin, also set new records in crypto investments last week amid Ether (ETH) surging past $4,000 on Dec. 6. According to CoinShares, Ethereum products saw $1.2 billion in weekly inflows last week, its largest inflows on record since the first Ethereum exchange-traded funds (ETFs) started trading in the United States in July.
Ethereum’s Growing Popularity
Ethereum has been gaining traction in recent months, with its growing popularity driven by increasing adoption of its smart contract platform and decentralized applications. The surge past $4,000 reflects its continued growth potential and increased investor interest.
Solana Sees Outflows Amid Ethereum ETF Investments
A spike in Ethereum ETF investments came ‘at the expense’ of Solana, which has seen $14 million in outflows, Butterfill noted. Solana products saw their second consecutive week of outflows, highlighting the competitive nature of the cryptocurrency market.
Blockchain Equities See Inflows
Blockchain equities saw inflows of $124 million, the largest since January, driven by growing investor confidence in improving Bitcoin miner margins, Butterfill said.
Cryptocurrency ETFs: A Year of Record Growth
Cryptocurrency ETFs have seen a massive year in 2024 following the historic launch of spot Bitcoin ETF trading in the US in January. On Dec. 6, Bitcoin ETF holdings surpassed 1.1 million BTC combined for the first time, surpassing those held by the anonymous Bitcoin creator, Satoshi Nakamoto.
Investing in Cryptocurrency: A Growing Trend
The growing popularity of cryptocurrency investment products reflects increasing investor interest and confidence in the market. As more institutions and investors participate, the demand for these products is expected to continue growing.
Conclusion
The record-breaking inflows into digital asset investment products reflect the continued growth and adoption of cryptocurrencies. With Bitcoin surging past $100,000 and Ethereum seeing its largest weekly inflows on record, it’s clear that investors remain bullish on the market. As the cryptocurrency landscape continues to evolve, it will be interesting to see how these trends develop in the coming months.
