According to CoinShares’ latest report, institutional investors poured a total of $3.2 billion into cryptocurrency investment products last week. This significant inflow has set a new record, raising the annual total to $44.5 billion.
Increased Liquidity and Trading Volume
CoinShares noted that digital asset investment products have seen net inflows for the tenth consecutive week. Alongside the $3.2 billion weekly net inflow, the trading volume of investment products on exchanges reached $21 billion, which corresponds to 30% of the Bitcoin $107,172 volume traded on reputable exchanges. The report highlighted that Bitcoin transactions on these exchanges averaged $8.3 billion daily throughout the year, equivalent to double that of the Financial Times Stock Exchange Index (FTSE 100).
Investment in Bitcoin has reached $38 billion, while Ethereum $4,020 has seen an inflow of $1 billion so far. Additionally, the altcoin market has garnered significant interest, with expectations surrounding an XRP ETF in the U.S. leading to a $145 million inflow. Polkadot and Litecoin also experienced positive movement, attracting $3.7 million and $2.2 million, respectively.
Regional Investment Flows Surge
According to the report, all regions of the world are benefiting from cryptocurrency investment flows. The United States leads with $3.1 billion in investments, followed by Switzerland with $36 million and Germany with $33 million. Brazil stands out with a $25 million inflow.
The CoinShares report emphasizes the growing demand for Bitcoin and Ethereum investment products. These two major digital assets continue to dominate the preferences of institutional investors. The high interest in Bitcoin and Ethereum supports market stability, while other altcoins demonstrate significant growth potential.
The intense demand for cryptocurrency investment products is increasing liquidity and facilitating trading. This situation allows a broader investor base to enter the market. The continuously rising interest from institutional investors indicates that cryptocurrency markets could see further growth in the future.