Crypto Inflows Surge to $1.3 Billion, Ethereum Leads the Way
In a surprising turn of events, cryptocurrency inflows experienced a significant boost, reaching a whopping $1.3 billion last week. This marks the fifth consecutive week of positive inflows, showcasing unwavering investor trust in the digital asset market.
Of particular interest is the surge in Ethereum inflows, which nearly doubled compared to Bitcoin inflows, signaling a remarkable shift in the landscape.
The recent report from CoinShares unveiled that crypto inflows hit the $1.3 billion mark, with Bitcoin attracting $407 million in investments. Meanwhile, Ethereum witnessed a surge in 'buying the dip' activity after its price dip to $2,500, resulting in a substantial inflow of $793 million.
Analysts attribute the surge in Ethereum inflows to the buzz surrounding the upcoming Pectra upgrade, marking an optimistic outlook for the digital currency.
The positive momentum in crypto investments follows a period where inflows totaled $527 million amidst the DeepSeek AI hype and global trade tensions instigated by former President Donald Trump. The sustained interest underscores the strategic accumulation of digital assets by both institutional and retail investors during market corrections.
Despite market corrections leading to a decrease in ETPs' asset under management to $163 billion, which is down by 10% from the all-time high in January, global ETPs remain the leading Bitcoin holders compared to other entities.
Furthermore, trading volumes remained steady at $20 billion for the week, indicating active engagement from traders and investors in adjusting their positions amid price fluctuations triggered by global events.
Looking forward, Nasdaq has filed 19b-4 forms with the US SEC to list and trade two ETPs from CoinShares, namely the XRP ETF and the Litecoin ETF, providing investors with exposure to XRP and LTC, respectively. This move aligns with the increasing demand for structurally sound investment vehicles offering regulated exposure to digital assets.
The industry's collective efforts in catering to institutional demands for crypto investment products, as evidenced by various firms submitting ETF filings, reflect the growing interest in expanding opportunities within the digital asset market.
As discussions and preparations for a Litecoin ETF gain momentum, on-chain data suggests that major holders are increasing their LTC positions in anticipation of regulatory approvals, hinting at a strong demand from both institutional and retail players.
The future of crypto investment products appears promising, with a diverse range of offerings on the horizon, catering to the evolving needs of market participants.
[Top crypto platforms | February 2025: Phemex, Bybit, Margex, BingX, Coinex]