Record Inflows Highlight Growing Confidence in Crypto
Digital assets are on a powerful upward trend, with investors pouring $3.3 billion into the market just last week. This marks a major milestone, pushing the total inflows over the past six weeks to an impressive $10.5 billion. Year-to-date, inflows have reached a record-breaking $10.8 billion. As a result, total assets under management (AUM) in the crypto space briefly touched a new all-time high of $187.5 billion.
The surge in crypto investments comes amid growing concerns about the U.S. economy. Moody’s recent downgrade of U.S. debt and rising treasury yields have sparked a flight to alternative assets, with many investors viewing crypto as a safe haven in uncertain times.
Bitcoin and Ethereum Lead the Charge
The United States led global investment, contributing $3.2 billion in inflows. Other major contributors included Germany, Hong Kong, and Australia, reflecting a worldwide surge in interest.
Bitcoin was the biggest winner of the week, attracting $2.9 billion in inflows. It now represents roughly 25% of total crypto inflows for 2024, solidifying its position as the top digital asset. Ethereum also had a strong showing, with $326 million in new investments. This marks its fifth consecutive week of gains and its best performance in over three months.
Other notable moves include Short-Bitcoin investment products, which brought in $12.7 million in inflows as some investors bet on potential volatility. However, not all digital assets shared the same momentum. XRP experienced significant outflows totaling $37.2 million, ending an 80-week streak of positive investor sentiment.
Despite a few setbacks, the overall mood in the crypto market remains bullish. With increasing global interest and economic uncertainty driving more capital into digital assets, the momentum behind crypto shows no signs of slowing down.
