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Digital asset investment products notched $1.3 billion in inflows in the past week.
It’s the fifth consecutive week of positive net flows for crypto exchange-traded products despite recent price declines. According to latest weekly flows report from digital asset manager CoinShares, the scenario outlines strong interest in buying amid market weakness.
Per a Coinshares report on February 10, the net inflows is almost double from the $747.4 million recorded the week before. The increase comes despite US President Donald Trump’s tariff impositions that saw prices dip amid investor reaction.
Bitcoin and Ethereum dominated the inflows. However, the latter outpaced the former this week, registering $793 million inflows compared to Bitcoin’s $407 million.
Overall, Bitcoin ETPs represent 7.1% of total market capitalization, making digital asset investment products the largest holder compared to other investments.
“Digital asset investment products saw inflows for the 5th consecutive week totalling US$1.3bn. Bitcoin’s BTC saw inflows of US$407m, with ETPs globally now representing 7.1% of the current market capitalisation. It was Ethereum who stole the show this week, with the price falling recently close to US$2,100 leading to significant buying-on-weakness, with inflows of US$793m,” CoinShares posted on X.
Investors see decline as a buying opportunity particularly after the rise in investment interest followed Ethereum’s price dip.
In the meantime, XRP and Solana secured third and fourth positions respectively with $21 million and $11million. Meanwhile, $1 billion in overall net inflows by the US was the highest regionally, followed by Germany, Switzerland, and Canada with $61 million, $54 million, and $37 million, respectively.
Bitcoin’s price has struggled with downside pressure below $100k in recent weeks. ETH has also experienced a tough month or so, with prices helmed below $3,000 and hitting lows of $2,100 at one time.
Spot Bitcoin ETF products got the green light to trade precisely a year ago after about a decade of waiting on the United States Securities and Exchange Commission (SEC). At the time, 11 different asset managers received approval to launch the product. These BTC ETF products have stunned the financial world with record milestones.
Bloomberg Senior ETF Analyst James Seyffart shared a chart comparing Bitcoin ETFs with their counterparts in the broader market. Per the chart, the BlackRock iShares Bitcoin Trust (IBIT) has the largest asset valuation after 1 year. The BlackRock IBIT crossed $50 billion AUM in December 2024.
IBIT is now worth $52.33 billion, beating its closest rival, the Invesco QQQ Trust Series, with $18.3 billion. Notable, Invesco QQQ Trust Series is one of the world’s largest in the broader financial world.
The Fidelity Wise Origin Bitcoin Fund (FBTC) secured third place among the best ETF launches ever. After a year, its assets under management were worth $19.681 billion. Other ETF products from ARK 21Shares and Bitwise earned $4.391 billion and $3.3829 billion, respectively.
According to Seyffart, adjusting this Bitcoin ETF’s accrued assets for inflation will still place them among the top 20. The performance aligns with earlier records that show BTC and Ethereum funds dominated across 740 ETF launches in 2024.
Acknowledging the strides of the BTC ETF products, Fox Business Journalist Eleanor Terrett also shared interesting numbers. Per her update, these ETF products have accumulated 1 million BTC units worth over $95 billion in today’s prices.
Considered the biggest asset in the world, these new ETF players also dusted Gold’s earlier milestones. The Bitcoin Exchange Traded Fund products have surpassed Gold’s AUM of $128 billion.
A little more on just how significant the $BTC ETFs have been:
Since the launch, the ETFs have accumulated over 1 million bitcoin, worth over $95 billion at today’s prices.
4 of the ETFs are now in the top 20 best performing U.S. ETF launches of all time — @BlackRock’s…
— Eleanor Terrett (@EleanorTerrett) January 10, 2025
As pointed out by Terrett, Gold ETFs took approximately 20 years before achieving the $128 billion milestone. BTC ETFs scored this record in a year. Considering the fast growth pace of Bitcoin over gold, Michael Saylor advised investors to ditch gold for BTC.
Spot Bitcoin ETF products form one of the biggest sources of demand for the underlying current. Owing to the consistent accumulation, Bitcoin price recorded its highest level in 2024. Per an earlier Coingape report, the coin hit $108,000 in December 2024 after multiple records scored in the past months.
Institutional investors in the U.S. and worldwide bought Bitcoin ETF in the US at an unexpected pace. With Donald Trump’s incoming pro-crypto administration set to start this month, there are expectations that more favorable policies to attract firms to BTC will be rolled out.
Bitwise CIO Matt Hougan is also optimistic about these funds’ performance for 2025, highlighting them as one of the three sources of insatiable Bitcoin demand in 2025.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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