Last week, cryptocurrency investment products recorded another week of positive growth, although the market continues to face strong volatility in major digital assets like Bitcoin and Ether. Crypto ETP products attracted $1.03 billion in inflows during the trading week ending Friday, according to reports from CoinShares.
James Butterfill, the research director of CoinShares, stated that with new money inflows, cryptocurrency ETPs continue to break record inflows to date (YTD), reaching a historic high of nearly $19 billion. This is a strong signal of the sustainable development of the cryptocurrency market and the growing interest from both institutional and individual investors.
Total assets under management (AUM) in crypto ETPs have reached $188 billion, a significant increase from last week's $184.4 billion, marking a new record high. This not only reflects the growing interest of investors but also demonstrates the great potential of cryptocurrency investment products globally.
Bitcoin continues to lead the inflow of money
Bitcoin continues to maintain its leading position in the inflow of money into ETP products, with $790 million invested last week, accounting for up to 76% of the total money flowing into crypto ETP products. However, according to Butterfill's assessment, the inflow of money into Bitcoin has shown signs of decline compared to three weeks ago, when the weekly average was only about $1.5 billion. This reflects the increasing caution of investors as Bitcoin approaches its all-time high price.
"The adjustment in cash flow indicates that investors are becoming more cautious as Bitcoin approaches its highs, and they are likely waiting for clearer signals regarding the long-term trend of the market," Butterfill shared.
Ether is gaining more attention
Meanwhile, Ether (ETH) continues to assert its strong appeal to investors. Ether ETP products attracted $225 million in inflows last week, marking the 11th consecutive week of inflows. This increasing level not only reflects growing interest but also indicates a marked change in investor sentiment. The inflow rate into Ether this week averaged 1.6% AUM, double that of Bitcoin's 0.8%. This is a signal that Ethereum is attracting greater attention from the market, especially as its network continues to improve and expand, with significant upgrades like Ethereum 2.0.
It is noteworthy that the majority of the inflow of money into cryptocurrency products last week was processed through BlackRock's funds. According to reports, $436 million was poured into BlackRock's funds, accounting for 42% of the total money flowing into cryptocurrency ETP products last week. This not only affirms BlackRock's leading position in the cryptocurrency investment fund sector but also demonstrates strong confidence from institutional investors in the growth potential of the crypto market.
With these positive signs, the cryptocurrency market continues to attract strong interest and participation from large institutions. Although the volatility of digital assets remains prominent, it cannot be denied that cryptocurrencies are increasingly becoming an important part of the investment portfolio of many institutions and individuals.
In this context, cryptocurrency ETP products, particularly Bitcoin and Ether, continue to play a key role, being a popular choice for investors seeking opportunities in a market full of potential but not without challenges. With inflows into cryptocurrency investment products remaining strong, the cryptocurrency market is witnessing solid developments, promising a bright and promising future for digital assets.