Digital assets markets recorded considerable momentum during the last week as investments reached a figure of US$3.3 billion, a significant jump. Year-to-date inflows increased dramatically to another record level of US$10.8 billion, an indicator of consistent investor confidence. Overall assets under management briefly touched a record high level of US$187.5 billion on the week.
Investors have a renewed interest in crypto assets since concerns over the US economy’s prospects grew. The recent downgrade by Moody’s and the sudden rise in treasury yields resulted in market reactions. These events made many investors seek alternative assets in the form of cryptocurrencies for greater economic security.
Bitcoin led all other digital assets in inflows at US$2.9 billion, reflecting the cryptocurrency’s firm grip on investor attention across the world. A quarter of total inflows since the start of 2024 was accounted for by the figure. Traders shorted the rally by trading short-Bitcoin instruments, which made US$12.7 million, their best week since the last week of 2024.
Swiss investors exit Digital Asset positions
Ethereum, too gained traction last week with inflows at US$326 million, the largest in more than three months. Ethereum registered its fifth consecutive week of inflows, a sign of enhanced investor belief in the performance of the asset in the longer run. The total cryptocurrency market has seen six consecutive weeks of net inflows, for a total of US$10.5 billion.
Ripple saw a sudden shift as its 80-week inflow streak was snapped with US$37.2 million outflows. This is XRP’s single-largest outflow and reverses a strong trend in investor sentiment towards the token.
The United States dominated the list with US$3.2 billion in inflows, reflecting the heavy demand for crypto investment. It was trailed by Germany at US$41.5 million, while Australia and Hong Kong registered US$10.9 million and US$33.3 million. Swiss investors, on their part, capitalized on the increased price to withdraw US$16.6 million to secure recent gains.
