The cryptocurrency market reached an unprecedented milestone last week, with various crypto products attracting their largest weekly inflows of $3.13 billion.
According to Coinshares’ report, the recent surge has driven their total inflows for the year to an all-time high of $37 billion, showcasing the growing investor confidence and institutional interest in cryptocurrencies. The surge is also a positive response from the broader crypto market to Bitcoin’s (BTC) price spike to almost $100,000 before its subsequent drop.
Bitcoin Leads the Pack
Inflows into Bitcoin products were the highest at $3 billion. BTC’s explosive ascent to a new all-time high of $99,655 further demonstrated its market supremacy.
Notably, short-Bitcoin products also attracted more attention, with $10 million in inflows as investors considered hedging techniques in the face of volatility. Alongside BTC products, other crypto products contributed significantly to these historic inflows.
For instance, investment in Solana (SOL) products was $16 million for the week, surpassing the $2.8 million inflow into Ethereum (ETH) products. Beyond BTC and SOL, altcoins such as Ripple (XRP), Litecoin (LTC), and Chainlink (LINK) contributed $20.4 million in combined inflows.
Altcoins and ETFs Fuel Bullish Momentum
This increasing diversity in inflows demonstrates how various crypto products are increasingly appealing to institutional and individual investors. US Bitcoin Spot Exchange Traded Funds (ETFs) also fueled the crypto market’s bullish momentum.
These ETFs, managed by well-known asset companies like BlackRock, ProShares, and Fidelity, brought in $3.1 billion. Accordingly, Bitcoin assets under management (AUM) have increased to a record high of $153.3 billion, indicating growing institutional interest.
SOL’s performance coincides with growing speculation that the US Securities and Exchange Commission (SEC) could approve a spot Solana ETF, another crypto product that would appeal to a broader investor base. Ethereum continues to dominate the altcoin market, but Solana’s recent successes show that institutions are becoming more interested in its ecosystem.
A Record-Breaking Year for Crypto Products
Meanwhile, the total inflows for this year have exceeded projections and outpaced milestones achieved by traditional safe-haven assets. For example, Bitcoin ETFs’ year-to-date inflows have surpassed the $309 million earned by US Gold ETFs in their first year of operation.
This dynamic highlights how the global financial landscape is changing and how digital assets are increasingly recognized as valid assets. According to Santiment data, BTC’s daily active addresses soared by 6.72% in the past day as whale accumulations continue.
Bitcoin’s Daily Active Addresses. | Source: Santiment