Key Points
- Spot Bitcoin ETFs experienced a record $3.13 billion weekly inflow, indicating increased investor confidence.
- Altcoins such as Solana, XRP, and Litecoin also saw significant institutional inflows.
The cryptocurrency market continues to show signs of growth and activity, with last week marking a key point as global investment products saw net inflows of around $3.13 billion. This increase largely came from heightened interest in U.S. spot Bitcoin (BTC) exchange-traded funds (ETFs), emphasizing the changing dynamics of the market.
Record-Breaking Crypto Inflows
CoinShares data reveals this trend as a sign of growing investor confidence and the influence of political and economic changes on the cryptocurrency space. In the week of November 18th–22nd, spot Bitcoin ETFs saw a significant 102% increase from the previous week’s $1.67 billion. This marked the seventh week of positive inflows, demonstrating sustained momentum and increasing investor interest. The total assets under management (AUM) also reached a record high of $153 billion.
BlackRock’s IBIT dominated the market during this rise, holding $48.95 billion in net assets as of November 22nd, with cumulative inflows reaching $31.33 billion. However, Grayscale’s GBTC accounted for $21.61 billion in net assets but has faced outflows exceeding $20 billion since its inception.
Altcoins Gain Traction
While Bitcoin led the inflow charts, altcoins also showed their growing appeal among institutional investors. For example, Solana (SOL) led the altcoin group with an impressive $16 million in net weekly inflows, surpassing Ethereum (ETH), which recorded $2.8 million. Ripple (XRP), Litecoin (LTC), and Chainlink (LINK) also performed well, with inflows of $15 million, $4.1 million, and $1.3 million respectively.
These figures indicate increasing confidence in the altcoin sector, driven by strong price momentum and the broader adoption of these digital assets across various use cases. However, it’s important to note that other factors may have also influenced these trends, such as looser monetary policy and the Republican party’s clean sweep in the recent US elections.