According to CoinShares’ most recent report, the cryptocurrency market is still thriving, with inflows of $3.2 billion last week. This is the longest run of inflows this year, with positive flows continuing for the tenth week in a row.
Inflows for the Year Reach a Record High
This most recent spike has brought the overall inflows for 2024 to $44.5 billion, a record amount that is four times greater than any other annual sum.
$11 billion in Bitcoin inflows are fueled by Trump’s election victory.
The election of Donald Trump in November has significantly impacted the cryptocurrency market. Since the election, more than $11 billion has been invested in Bitcoin-related items; only last week, another $2 billion was added.
The next U.S. administration’s anticipated pro-crypto posture and excitement about possible regulatory clarity are the main drivers of this movement. With a $3.1 billion contribution, the U.S. market topped the inflows, followed by Switzerland ($36 million), Germany ($33 million), and Brazil ($25 million).
The Sturdy Trading Activity of Bitcoin
James Butterfill, Head of Research at CoinShares, pointed out that 30% of Bitcoin trading activity on reliable exchanges was made up of Bitcoin exchange-traded products (ETPs), with weekly trading volumes averaging $21 billion. These exchanges saw $8.3 billion in daily Bitcoin volumes, indicating a lively and liquid trading environment.
Demand for short Bitcoin contracts increased as well; last week, inflows totaled $14.6 million. As Bitcoin’s price reached an all-time high of more than $106,000, this increased their total assets under management to $130 million, suggesting a growing interest in hedging tactics.
Ethereum Continues to See High Inflows
Ethereum recorded inflows for the seventh week in a row, continuing its upward trajectory. Products linked to Ethereum brought in $1 billion just last week, making the total inflows for this time frame $3.7 billion.
Additionally, spot Ethereum ETFs saw a 15-day run of inflows, bringing in over $2 billion, indicating that investor sentiment toward the asset has strengthened.
Interest in Altcoins Has Increased
The market’s bullish momentum also helped altcoins. With $145 million in inflows, XRP dominated the field, fueled by conjecture on a possible ETF listed in the United States. As investors looked to diversify their holdings, Polkadot and Litecoin attracted inflows of $3.7 million and $2.2 million, respectively.
This ongoing stream of capital highlights the rising trust in the cryptocurrency space, which is being fueled by positive market dynamics and encouraging regulatory developments.
