- Ethereum sees record inflows of $634M as investors pile in, driving YTD total to $2.2B, surpassing the previous 2021 record.
- XRP attracts $95M inflows, driven by growing speculation over a potential US-based ETF approval, marking its largest surge to date.
- Bitcoin suffers $457M in outflows after testing the $100K mark, marking its first major retreat since September.
CoinShares reported that investment products tied to digital assets for the previous week saw $270 million in inflows, but different assets showed different trends. Although the total capitalization remained nearly flat, Ethereum stood out as the most favored asset class, with investors piling in. Although US ETFs options trading skyrocketed at the beginning of the week, overall ETP trading values dropped to $22 billion from $34 billion the week before. YTD flows stand at a record $37.3bn across the sector in 2016.
On a regional level, the US dominate with $266 million of inflows while Hong Kong and Germany received $39 million and $12.3 million respectively. In contrast, there were outflows of $26 million in Switzerland and $10 million in Canada.
Ethereum Sees Record Inflows
The largest inflows were recorded for Ethereum with $634 million of capital going into the asset last week. This increase takes Ethereum’s yearly total to $2.2 billion, more than the previous record set this year. This has seen a dramatic shift in sentiment as more investors turn bullish on Ethereum; possibly due to anticipation of network upgrades as well as the continued surge in the adoption of decentralized finance (DeFi) solutions.
Source: CoinShares
Nonetheless, Bitcoin seemed to pull back with $457 million of outflows recorded in the asset. This is the first major outflow for Bitcoin since early September, a phenomenon that experts have put down to selling pressure after Bitcoin traded near the $100,000 level. Nevertheless, there has been a slight drop in the short term, but still the focus has not shifted from the Bitcoin, as the price swings still play a significant role in the market.
XRP’s $95M Surge
At the same time, XRP recorded the biggest weekly inflow of $95 million. This surge is attributed to increased anticipation of the approval of a US-based XRP exchange-traded fund (ETF) which seems to have encouraged the community of Ripple holders.
As the digital asset space matures further, it is clear that Ethereum leads the way in the investment market, after witnessing record levels of inflows that suggest institutional and retail investors are regaining confidence. Bitcoin’s fall and XRP’s gain are indicative of changing dynamics across the cryptocurrency space as multiple stories develop in parallel.
