Crypto Investments See $2.7 Billion Weekly Inflow Surge

$2.7 Billion Inflows Mark 11-Week Growth Streak

CoinShares reported that digital asset investments attracted $2.7 billion, marking the 11th straight week of growth. Institutional interest remains significant, focusing primarily on Ethereum.

Ethereum maintained a seven-week positive flow, adding over $1.5 billion, and held more than 10% of total AUM. Other assets, including Bitcoin, experienced smaller outflows, according to a report titled Crypto Investment Products Saw $2.25 Billion in Inflows in 2023: The Third Largest So Far.

Ethereum Shines Despite Bitcoin Outflows

The inflow trend underscores growing confidence in cryptocurrency investments, particularly from institutional investors. However, Bitcoin’s modest outflows reflect ongoing market fluctuations.

The financial implications signify a steady demand for digital assets, highlighting Ethereum’s dominance. Potential effects include enhanced liquidity and increased interest in related crypto markets. Jean-Marie Mognetti, CEO, and Co-founder of CoinShares, remarked:

“The sustained inflow into digital asset products reflects a growing interest from both institutional and retail investors looking to gain exposure to cryptocurrencies.”

Inflow Surge Mirrors Early 2024 ETF Gains

The $2.7 billion inflow is among the largest since the introduction of bitcoin spot ETFs. This surge parallels those following ETF approvals in early 2024.

Based on historical data, consistent inflows into major assets like Ethereum could bolster the broader use of DeFi protocols. Expert opinions suggest sustained interest could benefit Layer 1/2 tokens.