This week saw a significant influx of $2 billion in digital asset investments, bringing the total to $4.3 billion over the past five weeks. This surge in investment coincided with a notable increase in Exchange-Traded Products (ETPs) trading volumes, which saw a 55% spike from the previous week, reaching $12.8 billion.
The U.S. led the way in this investment wave, with a staggering $1.98 billion flowing in, marking one of the largest single-day inflows on record. This financial movement propelled the iShares Bitcoin ETF ahead of the long-standing leader Grayscale, now boasting an Assets under Management (AuM) value of $21 billion. This achievement occurred as the total AuM for digital assets surpassed the $100 billion mark, a peak not reached since March.
Bitcoin remained the star of the show, attracting $1.97 billion in investments. Meanwhile, Ethereum also experienced a surge in interest, with its best week of inflows since March totaling $69 million. This renewed interest in Ethereum can likely be attributed to the SEC’s recent approval of spot-based ETFs.
In terms of altcoin movements, the CoinShares report highlighted Fantom and XRP for their positive inflows, with $1.4 million and $1.2 million respectively. This activity indicates a growing investor interest in a wider variety of cryptocurrencies beyond the major players.
The current investment rally in digital assets is believed to be a 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 the board with digital asset providers, signaling a significant slowdown in outflows from established players.