A significant $2 billion surge in digital asset investments has been reported this week, bringing the total to $4.3 billion over the past five weeks. This sudden increase in investment coincides with a notable rise in Exchange-Traded Products (ETPs) trading volumes, which saw a 55% spike from the previous week, reaching $12.8 billion.
The United States led this influx with an impressive $1.98 billion, experiencing one of the largest single-day inflows on record. This financial movement has propelled the iShares Bitcoin ETF ahead of the long-standing leader Grayscale, now boasting an Assets under Management (AuM) value of $21 billion. This milestone aligns with the total AuM for digital assets surpassing $100 billion, a peak not seen since March.
Bitcoin remained the primary focus, attracting $1.97 billion in investments. Additionally, Ethereum saw a significant increase in interest, with its highest weekly inflows since March, totaling $69 million. This renewed interest in Ethereum is likely due to the recent SEC approval of spot-based ETFs.
In the world of altcoins, Fantom and XRP stood out for their positive inflows, with $1.4 million and $1.2 million respectively, as per the CoinShares report. This trend indicates a growing investor interest in a wider variety of cryptocurrencies beyond the major players.
The current surge in digital asset investments is believed to be a direct response to unexpectedly weak macroeconomic data in the U.S., which has shifted expectations towards earlier monetary policy cuts. This financial optimism is evident across nearly all digital asset providers and signifies a significant decrease in outflows from established players.