Bitcoin Fueling $882 Million Weekly Investments in Digital Assets (CoinShares Report)
Bitcoin (BTC) reigns supreme as the top digital asset, pulling in a whopping $867 million in just a week, according to a recent CoinShares report published on May 12. This influx powered the overall crypto investment products market, which saw a collective $882 million in inflows, marking the fourth consecutive week of gains. Year-to-date totals rose to a staggering $6.7 billion.
ETF Skyrockets to Records
The surge in investor confidence is set against a global backdrop of rising liquidity and inflationary concerns in the U.S., which have renewed interest in crypto as a hedge. CoinShares analysts attribute the influx to a mix of macroeconomic factors, such as the increase in M2 money supply and heightened stagflation risks. Additionally, BTC's growing allure to institutional investors, bolstered by several U.S. states recognizing the flagship cryptocurrency as a strategic reserve asset, is fortifying its role as a digital safe haven.
The CoinShares report reveals that U.S.-listed crypto ETFs have hit a record $62.9 billion in cumulative net inflows since their launch in January 2024, surpassing the previous peak of $61.6 billion recorded in early February.
Geographically, the United States was the primary catalyst of last week's activity, drawing in $840 million, followed by Germany with $44.5 million and Australia with $10.2 million. In contrast, Canada and Hong Kong registered outflows of $8 million and $4.3 million, respectively.
Ethereum Lags Behind
Despite a recent spike in Ethereum's (ETH) price, its inflows trail significantly behind BTC, totaling only $1.5 million last week. Sui drew notice, outperforming Solana (SOL), which lost $3.4 million in capital. Additionally, Sui has earned $84 million year-to-date, outpacing SOL's $76 million, perhaps signaling a change in investor sentiment within the Layer-1 ecosystem.
Bitcoin also demonstrates continued strength from a price perspective. At the time of this writing, it is trading at $103,853, dipping a modest 0.8% in the preceding 24 hours. However, over the past seven days, it has gained 10.3%, moving within a weekly range of $93,724 to $104,710, according to CoinGecko.
While it slightly underperformed the broader crypto market, which jumped 13.3% in the last seven days, Bitcoin's 30-day performance is impressive, growing 24.5% in that time. It remains just 4.6% below its all-time high of $108,786.
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- Institutional investors are increasingly recognizing Bitcoin (BTC) as a strategic reserve asset, adding to its digital safe haven appeal as a hedge against global liquidity and inflationary concerns.
- The surge in investor interest in crypto has propelled the deployment of $62.9 billion in cumulative net inflows into U.S.-listed crypto ETFs since their inception in January 2024.
- Despite Ethereum's (ETH) recent price surge, its inflows have lagged significantly behind Bitcoin (BTC), with only $1.5 million in inflows last week, compared to Bitcoin's $840 million.
- The crypto trading market continues to thrive, with Bitcoin (BTC) pulling in a massive $867 million in a week, bolstering the overall crypto investment products market and contributing to year-to-date totals of $6.7 billion. Meanwhile, altcoins and other digital assets also play key roles in the dynamic technology-driven financial landscape.
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