Crypto investment inflows hit $41B YTD – Will the market gain more?

• Crypto investment products hit $3.85 billion in weekly inflows, breaking previous records.
• XRP leads altcoins with $134.3 million inflows, while Cardano attracts $5.2 million.

Crypto investment products have shattered records, witnessing unprecedented weekly inflows of $3.85 billion, as highlighted in CoinShares’ latest report on digital asset flows.

This surge has propelled year-to-date inflows to an impressive $41 billion, with assets under management (AuM) soaring to $165 billion.

Interestingly, these figures suggest that the inflows have significantly surpassed the previous benchmarks set in 2021, which saw $10.6 billion in total inflows and $83 billion in AuM. 

How did Bitcoin and Ethereum perform?

Notably, Bitcoin [BTC]-focused investment products attracted $2.56 billion, while Ethereum [ETH]-focused products marked a historic $1.15 billion inflow, underscoring the growing demand for exposure to leading cryptocurrencies.

The report noted, 

“Bitcoin saw inflows of US$2.5bn bringing YTD inflows to US$36.5bn. Short bitcoin has seen tepid inflows of US$6.2m, historically we have seen much higher inflows after sharp price rises suggesting investors remain cautious on betting against the recent strong price momentum.”

As of the latest update from CoinMarketCap, BTC was trading at $97,270.30 after a drop of 1.27% in the past 24 hours.

Whereas, ETH was trading at $3,697.06 after a drop of 4.08% in the same period.

XRP steals the spotlight

Additionally, investment products linked to Ripple’s XRP, the native token of the XRP Ledger, recorded remarkable inflows of $134.3 million last week, nearly half of the $275 million year-to-date total, according to CoinShares.

That being said, XRP’s price experienced a significant surge, climbing over 11% in a week to reach a near $2.65 high before facing market-wide corrections.

Over the past month, the cryptocurrency demonstrated exponential growth, skyrocketing by 337% from approximately $0.55 to a peak at $2.9.

At press time, XRP was trading at $2.16, reflecting a resistance as its price dropped by 9.75% in the past 24 hours, as per CoinMarketCap. 

Other crypto investment products analyzed

Needless to say, Cardano’s ADA investment products continued to attract significant attention, securing $5.2 million in inflows, contributing to a quarter of the year’s total inflows for these assets.

Meanwhile, altcoins such as Binance [BNB], Litecoin [LTC], and Chainlink [LINK] also drew notable investments, with inflows ranging between $0.7 million and $2.2 million.

Interestingly, short Bitcoin products saw inflows of $6.2 million, reflecting diverse market sentiment.

However, not all altcoins saw inflows as outflows were reported for multi-asset investment products and Solana [SOL]-focused offerings, totaling $6.3 million and $14.1 million, respectively.