Crypto ETPs Reach $44.5B in YTD Inflows as Bitcoin Soars

Crypto Exchange-Traded Products (ETPs) have experienced a significant surge in inflows, reaching a remarkable $44.5 billion in year-to-date (YTD) inflows, according to the latest weekly fund flows report by digital asset manager CoinShares. This marks a continued streak of positive inflows, extending to the 10th consecutive week. CoinShares reports that this surge in crypto ETPs inflows represents a 300% increase compared to previous years, with 2024 seeing a quadruple spike in inflows. This trend has resulted in an average weekly volume of $21 billion, with Bitcoin (BTC) exchange-traded funds (ETFs) accounting for roughly 30% of this volume across major exchanges.

CoinShares’ head of research, James Butterfill, highlighted that Bitcoin trading volumes on trusted exchanges have been exceptionally liquid this year, averaging $8.3 billion per day, which is double that of the FTSE 100. This liquidity and the continuous increase in demand for Bitcoin-related products have contributed significantly to the growth of the crypto ETP market, and it coincides with Bitcoin’s price surge, which recently hit a new all-time high above $106,000.

In the past week alone, Bitcoin ETPs recorded an impressive $2 billion in inflows, bringing the total assets under management (AUM) in Bitcoin-focused ETPs to over $135 billion. Since the U.S. elections, Bitcoin has seen $11.5 billion in inflows, contributing to the growth of the broader digital asset market. Comparatively, the total AUM for global digital asset investment products stood at just over $167.4 billion as of December 13.

Other cryptocurrencies have also experienced notable inflows, with Ethereum (ETH) seeing a consistent rise in investments. Ethereum has been on a seven-week streak of positive inflows, accumulating $1 billion in the past week alone and $3.7 billion over this period. Analysts predict that Ethereum may surpass Bitcoin in ETF inflows in the coming year, reflecting growing investor confidence in the second-largest cryptocurrency by market capitalization.

XRP has also witnessed increased inflows, with $145 million in investments recorded in the last week. The growing institutional interest in XRP comes as Ripple’s stablecoin, RLUSD, gains traction and as experts anticipate potential approval for XRP ETFs by the U.S. Securities and Exchange Commission. The rising interest in XRP is also linked to its use in cross-border payments, which could further boost adoption.

Other notable altcoins, such as Polkadot and Litecoin, have attracted smaller inflows of $3.7 million and $2.2 million, respectively. These altcoins have also seen price increases in recent weeks, benefiting from Bitcoin’s upward momentum, which has had a ripple effect on other crypto-related assets, including stocks like MicroStrategy, which holds a significant amount of Bitcoin on its balance sheet.

As Bitcoin and other major cryptocurrencies continue to experience strong inflows into their respective ETPs, the overall sentiment in the digital asset market remains highly positive. The continued growth in the crypto ETP sector signals a broader trend of increasing institutional adoption and interest in digital assets, fueled by Bitcoin’s new all-time high and the growing demand for crypto investment products.