Crypto ETPs hit $44.5b in YTD inflows amid Bitcoin surge

Digital asset investment products saw a significant increase last week, with investors pouring another $3.2 billion into the market.

The global crypto exchange-traded products market has reached $44.5 billion in inflows since the beginning of the year, with the positive flow streak continuing for the 10th consecutive week, digital asset manager CoinShares said in its weekly funds flows report.

According to CoinShares, inflows into crypto ETPs have increased by 300% compared to other years; The fourfold increase in 2024 also allowed for an average of $21 billion in volume per week. Approximately 30% of this ETP volume is in Bitcoin exchange-traded funds on major exchanges.

“Bitcoin volumes on trusted exchanges (all investment types) are highly liquid, averaging US$8.3bn daily this year, twice the FTSE 100,” said James Butterfill, head of research at CoinShares.

Bitcoin broke a record of $2 billion in weekly inflows

The increase in flows into digital asset investment products comes as Bitcoin (BTC) remains near the psychological $100,000 level. BTC has since reached a new high above $106k.

Last week, BTC investment products recorded $2 billion inflows into Bitcoin ETPs. Since the US election, Bitcoin has seen inflows of $11.5 billion and total assets managed in ETPs have risen to over $135 billion. Comparatively, global digital asset investment products AUM stood at just over $167.4 billion as of December 13.

BTC ETFs saw cumulative net inflows of $35.6 billion as of Dec. 13, according to SoSoValue data. The total value traded since the funds were launched on US exchanges has been over $3.1 billion. BlackRock’s iShares Bitcoin Trust eclipsed other ETFs with mega net flows.

Ethereum and XRP are also seeing inflows

Ethereum (ETH), which is predicted to surpass BTC in ETF inflows next year, continues its seven-week streak of positive inflows, with $1 billion in the past week and $3.7 billion in this period.

Among the top altcoins, XRP (XRP) recorded inflows of $145 million last week, and Polkadot (DOT) and Litecoin (LTC) attracted $3.7 million and $2.2 million, respectively.

Institutional investor interest in XRP has increased since Trump’s win, and experts have pointed to a potential approval for XRP ETFs by the US Securities and Exchange Commission. Analysts noted that Ripple’s launch of RLUSD, its stablecoin pegged 1:1 to the US dollar, could be another catalyst for XRP as cross-border payments adoption gains momentum.

The prices of these altcoins have increased over the past few weeks, and the rise in BTC has also affected crypto stocks like MicroStrategy.