Digital Assets Surge 195% Year-to-Date With $3.7 Billion Weekly Inflow

Digital asset investment vehicles experienced a significant surge last week, attracting $3.7 billion in inflows, marking the second-highest weekly inflow on record. This influx has been consistent, with the 13th consecutive week of inflows, bringing the cumulative total to $21.8 billion. Year-to-date inflows have reached $22.7 billion, highlighting the growing interest in digital assets.

Assets under management (AuM) surpassed the $200 billion milestone for the first time, reaching a record $211 billion. This surge in AuM was accompanied by a doubling of ETP trading volumes to $29 billion, far exceeding the year’s typical weekly average.

Bitcoin investment products recorded $2.7 billion in inflows last week, pushing the total AuM to $179.5 billion. This influx means that Bitcoin now represents 54% of the AuM held in gold ETPs for the first time, indicating a shift in investor preference towards digital assets. Short Bitcoin ETPs saw minor inflows of $0.4 million, suggesting a cautious but optimistic market sentiment.

Ethereum continued its streak with a 12th consecutive week of inflows, amassing $990 million, its fourth-largest on record. In relative terms, Ethereum’s inflows over 12 weeks equate to 19.5% of its AuM, outperforming Bitcoin’s 9.8%. Solana followed with a strong $92.6 million in inflows, while Sui attracted $3.5 million. Multi-asset investment products saw $1.1 million in new capital, and Cardano pulled in $0.5 million. On the other hand, XRP led outflows with $104 million, while Chainlink noted $0.5 million in outflows.

Regional flows showed the United States in a clear lead with $3.7 billion in inflows, while Switzerland and Canada posted $65.8 million and $17.1 million, respectively. Australia’s inflows stood at $1 million. Germany recorded the week’s largest outflows with $85.7 million. Sweden and Brazil followed with $15.7 million and $7.5 million in outflows, respectively.

These strong inflows into digital assets have coincided with Bitcoin’s breakout, indicating a growing institutional interest and confidence in the digital asset market. According to QCP Capital, Bitcoin’s rally above $122,000 shows no signs of slowing, driven by a decisive technical move and rising institutional demand. The Crypto Fear & Greed Index jumped from 40 to 70 in three weeks, signaling a clear transition from fear to greed among investors. Spot Bitcoin ETFs saw over $2 billion in net inflows last week, indicative of growing institutional participation in the rally.

Perpetual funding rates are nearing 30% as leveraged long positions build, while total open interest has crossed $43 billion, levels last seen in January. Despite the rally, implied volatility has not spiked as it usually does. Front-end implied vols rose but remain below last year’s average levels. One-month risk reversals are also flat, pointing to little demand for immediate upside. However, September and December risk reversals show strong bids for calls, meaning investors are hedging long-term upside while managing near-term caution. Elevated funding rates also call for careful positioning amid market euphoria. QCP Capital remains structurally bullish on Bitcoin with macro and institutional support but prefers positioning on a pullback rather than chasing the current rally.