Bitcoin and ETH Record $18.8 Billion Inflows for the Week

Digital asset investment products have seen a record-breaking inflow of over $17.8 billion year-to-date (YTD), signaling the onset of a potential recovery in the cryptocurrency market. Last week alone, these investment products recorded inflows totaling $1.44 billion.

Data from CoinShares reveals that YTD inflows for 2024 have reached $17.8 billion, significantly surpassing the previous record of $10.6 billion set in 2021. The majority of these inflows are attributed to buyers based in the United States, with Switzerland also making substantial investments in digital assets. CoinShares noted:

“Regionally, the US led with $1.3 billion for the week, although the positive sentiment was seen across all other countries, most notably Switzerland (a record this year for inflows), Hong Kong, and Canada with $58 million, $55 million, and $24 million respectively.”

Bitcoin experienced its fifth-largest weekly inflow on record, amounting to over $1.35 billion. This significant influx helped the world’s first cryptocurrency rebound above the crucial $60,000 mark. Conversely, short Bitcoin-related investment products saw their largest weekly outflows since April 2024, totaling over $8.6 million.

The recent Bitcoin dip-buying was likely prompted by the price decline due to the German government’s BTC sales. CoinShares explained:

“We believe price weakness due to the German Government bitcoin sales and a turnaround in sentiment due to lower-than-expected CPI in the US prompted investors to add to positions.”

Ether recorded the second-largest inflows after Bitcoin, with over $72.1 million in the past week. The growing inflows are likely in anticipation of the first spot Ethereum exchange-traded fund (ETF) in the US, which could begin trading within the next few weeks.

US spot Ether ETF issuers are expecting final comments from the Securities and Exchange Commission (SEC) early this week, according to industry sources. Several issuers, including VanEck and 21Shares, have filed amended registrations in hopes of receiving the SEC’s final approval to list spot Ether ETFs. Currently, eight spot issuers are awaiting regulatory approval in the US.