Crypto asset investment products experienced their largest week of inflows this year, driven by growing market optimism and surging prices.
CoinShares, a prominent European digital asset manager, revealed that investment products saw $2.2 billion in inflows last week, bringing the year-to-date total to $2.8 billion. This marks a significant milestone for the digital asset market, with total assets under management (AuM) now at a record $171 billion.
Bitcoin, Ethereum Lead Inflows; Altcoins See Mixed Activity
According to the CoinShares report, Bitcoin continued to dominate the market, attracting $1.9 billion in inflows last week, pushing its year-to-date total to $2.7 billion.
Interestingly, while the recent price rally might have been expected to draw short-position inflows, CoinShares noted minor outflows of $500,000 from short Bitcoin products. This departure from typical behavior suggests shifting dynamics in how investors are positioning themselves.
Ethereum also rebounded, with inflows of $246 million, reversing its earlier outflows this year. However, despite the recent recovery, Ethereum remains the poorest performer in terms of cumulative inflows year-to-date.
Other altcoins showed limited activity: XRP garnered an additional $31 million last week, pushing its total inflows since mid-November to $484 million. Meanwhile, Solana saw $2.5 million in inflows, and Stellar recorded $2.1 million, but overall altcoin activity was subdued.
Regionally, the United States accounted for the majority of inflows, with $2 billion, while Switzerland and Canada also contributed $89 million and $13 million, respectively. These figures highlights the increasing global participation in digital asset investment products.
What Was Behind The Inflow Surge?
According to CoinShares’ Head of Research, James Butterfill, last week’s inflows were accompanied by high trading volumes on exchange-traded products (ETPs), reaching $21 billion—about 34% of total Bitcoin trading volumes on trusted exchanges.
Furthermore, last week’s surge in crypto inflows—particularly in Bitcoin—can be linked to the inauguration of the pro-crypto Donald Trump administration. Butterfill wrote in the report:
Digital asset investment products recorded inflows of US$2.2bn last week amid the Trump inauguration euphoria, the largest week of inflows so far this year, bringing year-to-date (YTD) inflows to US$2.8bn.
Speaking of inauguration, there has been some significant events that has happen within the crypto market just few days prior to the inauguration. On Saturday Donald Trump who is now the 47th president of the Unites States launched his own memecoin with the ticker TRUMP.
Interestingly, in less than 48 hours, Tump’s wife Melania also launched her own memecoin with the ticker MELENIA. These events resulted in notable volatility in the market with BTC and other major assets seeing a decline before now seeing a recovery as of earlier today.
The Official Melania Meme is live!
You can buy $MELANIA now. https://t.co/8FXvlMBhVf
FUAfBo2jgks6gB4Z4LfZkqSZgzNucisEHqnNebaRxM1P pic.twitter.com/t2vYiahRn6
— MELANIA TRUMP (@MELANIATRUMP) January 19, 2025
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