Key Points
- Investments in crypto ETF products reached $1.9 billion last week, bringing the total for the year to $4.8 billion.
- Bitcoin (BTC) remains the dominant choice, attracting $1.6 billion, or 92% of total inflows.
The previous week saw nearly $2 billion invested into cryptocurrency products, pushing the total for the year so far to $4.8 billion according to a research report by CoinShares.
Bitcoin Dominates Investment Inflows
Bitcoin (BTC) continues to be the most popular choice, with $1.6 billion, or 92% of total inflows, invested last week. This brings the total investment in Bitcoin to $4.4 billion this year. Short-Bitcoin ETFs also experienced an inflow of $5.1 million, which CoinShares suggests may be traders bracing for potential market pullbacks following Bitcoin’s recent rise.
The U.S. led with inflows of $1.7 billion. Canada, Switzerland, and Germany also saw inflows, with $31 million, $35 million, and $23 million respectively.
Other Cryptocurrencies See Increased Inflows
Ethereum (ETH) saw a recovery with $205 million in inflows after a tough start to the year. XRP (XRP) attracted $18.5 million, maintaining its momentum after reaching a new all-time high the previous week. Smaller altcoins also saw inflows, with Solana (SOL) bringing in $6.9 million, Chainlink (LINK) $6.6 million, and Polkadot (DOT) $2.6 million. CoinShares’ Head of Research, James Butterfill, observed that no digital asset investment products experienced outflows last week.
The increase in inflows comes as trading volumes on centralized exchanges rose to $25 billion, accounting for 37% of activity on trusted crypto exchanges. Butterfill described these events as some of the most significant in recent memory, driven by the enthusiasm surrounding Bitcoin’s potential as a strategic reserve asset.
However, the adoption of Bitcoin as a reserve asset is still a topic of debate. Pierre Rochard, VP at Riot Platforms, accused Ripple of leading a major lobbying effort against the Strategic Bitcoin Reserve. He alleges that Ripple is spending millions to block it, defending its XRP-based narrative and pushing for state-backed digital currencies. Ripple’s CEO, Brad Garlinghouse, responded by stating that the company’s efforts align with the broader goals of the Biden administration.
