Crypto Investment Products See $3.2 Billion Inflows Led by BTC and ETH
Crypto investment products recorded net inflows for the tenth consecutive week, with Bitcoin #BTC and Ethereum #ETH leading the majority of inflows. Additionally, inflows into XRP increased amid speculation regarding an XRP ETF approval.
According to CoinShares' latest report, digital asset investment products experienced inflows totaling $3.2 billion from December 9–13. This follows a record $3.85 billion in weekly inflows during the previous period, bringing total inflows for 2024 to $44.5 billion. The last ten weeks alone contributed $20.3 billion, accounting for 45% of the year's total inflows.
BTC and ETH Inflows
Last week, Bitcoin investment products saw inflows of $2 billion, raising net inflows since Donald Trump’s victory to $11.5 billion. BlackRock’s iShares Bitcoin Trust (IBIT) was a significant contributor to these inflows.
Short BTC products also saw increased activity, with inflows of $14.6 million, but total assets under management for short BTC exchange-traded products (ETPs) remained low at $130 million, as noted by CoinShares’ head of research James Butterfill.
Ethereum ranked second after Bitcoin, attracting over $1 billion in inflows during the week of December 9-16. Ethereum ETPs have shown consistent momentum, marking seven consecutive weeks of gains, with total inflows reaching $3.7 billion over this period.
XRP ETF Speculation Drives Inflows
CoinShares reported that XRP experienced inflows of $145 million, driven by optimism surrounding a US-listed ETF. Following Donald Trump's victory, expectations for an XRP ETF have grown, with analysts anticipating a swift resolution to the Ripple vs SEC lawsuit. Major players like WisdomTree are also pursuing XRP ETF applications.
Recent reports indicated that BlackRock might file for an XRP ETF application, potentially adding significant liquidity to the market. This could encourage ETF applications for other cryptocurrencies such as Cardano and Dogecoin, boosting investor confidence in these assets.
The XRP price has approached resistance at $2.4, signaling potential for a breakout to $3. These inflows indicate increasing confidence among market participants for the fourth-largest cryptocurrency.