Investors poured a staggering $1.44 billion into crypto investment products last week, pushing year-to-date inflows to an all-time high of $17.8 billion. This surge comes despite recent price weakness in the crypto market.
According to the CoinShares report, inflows in 2024 have already beat the old record of $10.6 billion from 2021. The U.S. led with $1.3 billion in inflows. Switzerland, Hong Kong, and Canada also saw a lot of investor interest.
Bitcoin (BTC) had the largest inflow at $1.35 billion. This was the fifth-highest weekly amount ever. This renewed interest may be due to lower U.S. inflation and the German government’s Bitcoin sales.
Ethereum (ETH) also saw renewed interest, with $72 million in inflows – its largest since March. This uptick is likely tied to anticipation surrounding the imminent approval of a spot-based ETH ETF in the U.S. Other altcoins like Solana (SOL), Avalanche (AVAX), and Chainlink (LINK) also experienced positive flows.
Interestingly, short-Bitcoin products experienced their highest weekly outflows since April amounting to $8.6 million. It may be indicated that market sentiment could be changing for the better as investors grow more optimistic about Bitcoin.
Institutional interest and crypto trading volumes
The overall trading volumes were low at $8.9 billion for the week. This is compared to the year’s average of $21 billion. However, the surge in inflows shows growing interest from institutions in the crypto space.
CryptoQuant data further supports this trend, showing an increase in U.S. whale and institutional Bitcoin purchases. The Coinbase premium gap is a key sign of institutional activity. This gap has changed from a selling trend to a buying trend.
This bounce in Bitcoin prices could mean more gains. More money may flow into Bitcoin funds this week. Analysts say the market has adjusted, and investor worries have eased. This may allow Bitcoin to keep rising.
