How Did Bitcoin and Altcoin Investment Products Experience Capital Flows in the Week of November 20–24?

• Digital asset investment products saw a total of $346 million in inflows last week, marking the largest weekly inflow for nine consecutive weeks.
• The combination of price increases and inflows raised the total assets under management (AuM) to $45.3 billion, the highest level in 1.5 years.
• Bitcoin saw inflows of $312 million last week, bringing the total inflows since the beginning of the year to over $1.5 billion.

Investment products for Ethereum and other altcoins also experienced significant capital inflows last week.

Capital Flows in Digital Asset Investment Products

Digital asset investment products saw a total of $346 million in inflows last week, marking the largest weekly inflow for nine consecutive weeks. This rally, fueled by expectations of a spot-based ETF launch in the United States, is the largest since the bull market at the end of 2021.

The combination of price increases and inflows raised the total assets under management (AuM) to $45.3 billion, the highest level in 1.5 years. Regionally, Canada and Germany accounted for 87% of total inflows, with only $30 million in inflows from the United States, possibly due to the expected low participation of investors awaiting the launch of ETFs.

Bitcoin saw inflows of $312 million last week, bringing the total inflows since the beginning of the year to over $1.5 billion. While short sellers persisted, a total outflow of $0.9 million was observed in the third week, and AuM declined by 61% since the peak in April 2023. ETP volumes, representing 18% of the total spot Bitcoin volume last week, highlight the increasing use of ETPs to gain exposure to the asset class.

Inflows into Altcoin Products

Ethereum saw inflows of $34 million last week, bringing this four-week run to $103 million, almost reversing the trend of outflows for the year and indicating a significant shift in sentiment. Solana, Polkadot, and Chainlink saw inflows of $3.5 million, $0.8 million, and $0.6 million, respectively.