Digital Asset Products Experience Historic Inflows of $2.2 Billion, Raising Year-to-Date Total to $29.2 Billion

Investment products in digital assets witnessed a remarkable increase last week, drawing in $2.2 billion, which elevates the total inflows for the year to a record-setting $29.2 billion.

This substantial influx has propelled total assets under management (AuM) to surpass $100 billion for only the second occasion, reaching $102 billion—comparable to figures observed in early June 2024, according to a recent report by CoinShares.

Trading volumes surged by 67% compared to the previous week, rising to $19.2 billion, representing 35% of the overall Bitcoin trading on reputable exchanges.

Bitcoin is the Main Beneficiary

Bitcoin emerged as the main beneficiary, absorbing the full $2.2 billion inflow, while short-Bitcoin products attracted an additional $8.9 million.

In contrast, Ethereum experienced only $9.5 million in inflows, with Solana gaining $5.7 million, while other altcoins, such as Polkadot and Arbitrum, saw minimal inflows.

The U.S. market led with the entire $2.2 billion in inflows, while Germany recorded modest inflows of $5.1 million.

[COINSHARES] Digital asset inflows reached $2.2B last week, pushing the year-to-date total to a record $29.2B; Bitcoin leads with $2.2B, Ethereum sees $9.5M$BTC $ETH pic.twitter.com/JU9VZYmfR4

— BecauseBitcoin.com (@BecauseBitcoin) November 4, 2024

Analysts indicate that the enthusiasm surrounding potential Republican electoral successes contributed to these inflows, particularly at the beginning of the week.

However, as polling trends shifted, minor outflows were observed on Friday, underscoring Bitcoin’s sensitivity to U.S. electoral dynamics.

On Wednesday, October 30, spot Bitcoin ETFs recorded an impressive $893.21 million in net inflows, marking the second-highest total ever.

BlackRock’s iShares Bitcoin Trust (IBIT) led the charge, achieving over $872 million in net inflows—the highest single-day total since its inception in January and a figure that exceeds the previous record set on March 12.

As previously reported, Bitcoin spot ETFs also experienced record inflows of $870 million on October 29.

Could a New Bitcoin All-Time High Be Near?

Last week, Bitcoin reached a peak of $73,000, just below its all-time high (ATH), igniting speculation that a significant breakout may be forthcoming.

According to CEX.io’s Illya Otychenko, Bitcoin did not achieve a new ATH due to profit-taking by short-term holders.

He noted that the current consolidation phase, marked by decreasing trading volume, suggests that a substantial price movement could be imminent.

Historically, Bitcoin has demonstrated a trend of double-digit gains following ATH breakouts, frequently accompanied by heightened volatility.

Current technical indicators, including the 20-day Exponential Moving Average (EMA) and a recently formed golden cross between the 50-day and 200-day Simple Moving Averages (SMA), indicate bullish momentum, Otychenko stated.

However, he cautioned that the daily MACD suggests a potential bearish crossover, signaling that market participants should remain alert.

Key upcoming events, such as the U.S. elections on November 5 and a Federal Reserve meeting on November 6-7, could introduce volatility and influence Bitcoin’s price.

Notably, inflows into U.S. spot Bitcoin ETFs have surged, indicating increased interest that may precede significant market movements.

Despite recent profit-taking by short-term holders, long-term investors appear to maintain confidence in Bitcoin’s potential, choosing to hold their positions.

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