Digital Asset Investment Products See 3.7 Billion Inflows

Digital asset investment products experienced a significant surge in inflows, totaling US$3.7 billion last week. This marked the second-largest weekly inflow in history, according to CoinShares analyst James Butterfill. The substantial capital injection drove the total assets under management (AuM) across crypto exchange-traded products (ETPs) to a new all-time high of US$211 billion. This surge in investment underscores the growing institutional interest and bullish sentiment in the digital asset market.

Bitcoin and Ethereum were the primary beneficiaries of this capital influx. Bitcoin attracted US$2.7 billion in inflows, raising its total AuM to US$179.5 billion. This milestone is particularly noteworthy as it means that Bitcoin ETPs now account for 54% of the value held in gold exchange-traded products, highlighting Bitcoin's increasing status as digital gold. Despite the rally, short bitcoin products saw little activity, indicating a prevailing bullish bias among investors. Ethereum also continued its strong performance, securing its twelfth straight week of positive flows with US$990 million added last week alone. This represents the fourth-highest weekly figure on record and indicates growing investor conviction in Ethereum’s long-term fundamentals.

Regionally, the United States dominated the flows, accounting for the entirety of the US$3.7 billion weekly inflow. In contrast, Germany experienced notable outflows of US$85.7 million, which could be attributed to regional profit-taking or shifting regulatory sentiment. Switzerland and Canada posted moderate inflows of US$65.8 million and US$17.1 million, respectively. Among altcoins, Solana stood out with US$92.6 million in inflows, reinforcing its position as a favored layer-1 bet outside of Ethereum. Conversely, XRP suffered the largest weekly outflows at US$104 million, suggesting waning investor confidence or reactionary moves following recent price action.

Despite some mixed performance among altcoins, the sustained capital inflow across the broader market is a strong indicator of renewed institutional and retail engagement in the digital asset sector. The intensifying institutional appetite and the bullish sentiment that has sustained 13 consecutive weeks of net inflows further reinforce the positive outlook for digital assets. The surge in capital and the growing AuM highlight the increasing acceptance and integration of digital assets into mainstream investment portfolios, signaling a robust and growing market.