In summary
- Inflows into digital investment products reached $3.2 billion last week, accumulating $44.5 billion in 2024.
- Bitcoin led inflows with $38.5 billion, driven by spot ETFs and US elections.
- XRP has quadrupled in value since November, with $145 million in inflows in the last week.
The multi-month torrent of cash inflows continued apace last week, as digital asset investment products—including Bitcoin and Ethereum spot ETFs—recorded $3.2 billion in inflows.
Bringing year-to-date inflows to $44.5 billion, the figure quadrupled compared to any year on record, according to data from CoinShares. In a post on Monday, James Butterfill, Director of Research at CoinShares, described the figure as “staggering,” with two weeks left in 2024.
This is the 10th consecutive week that digital asset investment products have seen positive flows, the latest rush follows a record $3.85 billion the previous week. This year, investors have poured $38.5 billion into Bitcoin products, representing 87% of all inflows, alongside the launch of Bitcoin spot ETFs and Donald Trump’s US election victory.
However, digital asset investment products for altcoins like Ethereum and XRP saw notable inflows last week when the president-elect said, “We’re going to do something great with cryptocurrencies.”
Meanwhile, pro-Cryptocurrency Rep. French Hill (R-AH) was tapped to lead the influential House Financial Services Committee.
Digital asset investment products for Ethereum recorded $1 billion in inflows last week, bringing this year’s total to $4.4 billion. Despite Ethereum’s relatively poor performance this year among major cryptocurrencies, the previous week marked a record in terms of inflows for Ethereum investment products.
As lawmakers resume efforts to pass federal cryptocurrency legislation next year, some analysts believe a market structure bill will encourage developers to build more applications on top of the Ethereum network.
XRP, a token launched by the co-founders of Ripple Labs, has nearly quadrupled in price since Election Day, rising to $2.46 from $0.50, according to data from CoinGecko. Last week, investment products for the asset saw inflows of $145 million, bringing year-to-date inflows to $421 million. Butterfill attributed the recent momentum to rising hopes for a “US-listed ETF.”
Although Bitcoin and Ethereum are the only digital assets with spot ETFs in the US, experts say regulatory changes under the incoming administration could allow new products to be launched for other cryptocurrencies. WisdomTree and 21Shares are two of the major asset managers that have filed applications for an ETF offering exposure to XRP.
For now, any allocation to XRP investment products is made from outside the US, which accounted for $3.5 billion or 92% of inflows last week. Behind the US were Swiss-based investors with $159 million in inflows, and Germany with $116 million.
Notably, Ripple’s RLUSD stablecoin, launching this Tuesday, is not limited to the XRP network, also known as the XRP Ledger. The product destined to enter the $200 billion stablecoin market will also be issued in Ethereum, the company confirmed this Monday.
Edited by Andrew Hayward
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