Digital asset funds have seen an incredible influx of $31.3 billion, setting a new record. The total assets under management globally have reached $116 billion, indicating a growing confidence in the market. CoinShares reported that there were $1.2 billion in inflows just last week, marking the fifth consecutive week of positive momentum.
James Butterfill, the head of research at CoinShares, pointed out that trading volumes for exchange-traded products (ETPs) surged to $20 billion, the highest level since April. Bitcoin led the charge with $1.8 billion in inflows last week, contributing to a total of $9 billion since the Federal Reserve’s interest rate cut in September.
The United States saw the most significant inflows, with $1.95 billion, followed by Switzerland at $23 million and Germany at $20 million. The US Bitcoin ETF sector, particularly BlackRock’s IBIT fund, attracted roughly $1.3 billion. This trend indicates a growing interest in Bitcoin-backed financial products and digital assets as a whole within mainstream investment portfolios.
Ethereum also experienced a surge in inflows, attracting $157 million, its highest weekly figure since the launch of exchange-traded funds in July. Other altcoins like Solana, Uniswap, and TRON also saw modest gains in inflows. Additionally, blockchain equities received an additional $61 million, showing increasing demand across the digital asset space.
Overall, the unprecedented inflows into digital asset funds reflect a positive investor sentiment driven by favorable macroeconomic conditions and significant changes in the US political landscape. This trend indicates a growing confidence in the digital asset market and a shift towards incorporating digital assets into mainstream investment portfolios.