Digital Asset Investment Products See Inflows Spike Ahead of Trump’s Inauguration
Key Points:
- Digital asset investment products saw record inflows of $2.2 billion last week, with total AUM reaching a new high of $171 billion.
- Bitcoin led the inflows with $1.9 billion, while Ethereum recorded $246 million in inflows.
Digital asset investment products experienced a significant surge in inflows last week, with a record $2.2 billion entering the market amid the euphoria surrounding former President Donald Trump’s inauguration.
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Record Inflows Push Digital Asset Investment Products to New High
The digital asset investment product inflows represent the largest weekly inflow of the year and push year-to-date inflows to $2.7 billion.
The recent price increases have helped to push AuM to a new all-time high of $171 billion. Trading volumes for ETPs remained robust, with flows of $21 billion in the last week, accounting for 34% of total Bitcoin trading volumes across all trusted exchanges.
Regional inflows into ETPs were dominated by the United States, posting $2 billion in inflows last week, and Switzerland and Canada saw significant contributions with $89 million and $13 million each, respectively.
Ethereum and XRP Among the Biggest Altcoin Gainers, Activity Remain Limited to a Few
Bitcoin dominated the inflows with $1.9 billion, which brings its YTD inflows to $2.7 billion. Despite the positive price momentum, an interesting anomaly occurred with minor outflows of $0.5 million from short positions, which generally receive inflows during this type of price action.
Ethereum saw inflows of $246 million last week, reversing some of the earlier outflows, but is still the least favoured asset in terms of flows this year. At the other end of the spectrum, Solana saw inflows of only $2.5 million.
XRP continued to gain at 31 million inflows, a total of $484 million since mid-November 2024. Altcoin activity was again relatively muted, and Stellar flows totalled just $2.1m in inflows in the week.
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