Digital Asset Funds Top $2.1 Billion as AUM Surges

Highlights:

• Digital asset funds saw a total of $2.1 billion as trading volumes surged. 
• Bitcoin led inflows with $1.4 billion in the last seven days taking AUM above $138 billion. 
• Altcoins like Ethereum and Solana also recorded decent positive movements.

Digital asset funds recorded a bullish week across Bitcoin and altcoins with surging asset prices. A new report from CoinShares shows consecutive inflows in crypto funds hitting $2.1 billion. This comes on the back of institutional activity that followed bullish momentum in the last 30 days. As firms increase their appetite for these funds, the general sentiment points upward for crypto assets leading to a price action. 

Bitcoin Leads Inflows

Crypto market leader, Bitcoin continues its uphill climb accounting for $1.4 billion of weekly institutional flows. The rise in BTC price was instrumental to the general market as it tapped a new all-time high.

This grew general inflows to $3 billion in the first part of the week before corrections wiped off a chunk of assets. Per the report, monthly inflows rose to $3.2 billion while year-to-date (YTD) numbers stood at $30.8 billion. 

📈 Digital asset inflows reached US$2.2bn last week, bringing year-to-date inflows to a record US$33.5bn. #Bitcoin and #Ethereum saw inflows of US$1.48bn and US$646m respectively. Short bitcoin investment products saw inflows of US$49m.

Full report: https://t.co/W1BDGvhJ3B pic.twitter.com/45YkiVTOyV

— CoinShares (@CoinSharesCo) November 18, 2024

Assets under management soared to $138 billion with rapid interest in altcoins and multiple jurisdictions. AUM growth was linked to policy rate cuts which saw funds flow to risky assets. This occurred in several countries over weeks with figures moving past $11 billion since the United States announced the first rate cut in September.

CoinShares analysts stated:

“Recent market activity, particularly Bitcoin surpassing its all-time highs, propelled total assets under management (AuM) to a new peak of US$138bn earlier in the week. This recent surge in activity appears to be driven by a combination of looser monetary policy and the Republican party’s clean sweep in the recent US elections.”

The United States election is considered a game changer with the market expecting pro-crypto rules to drive innovation. 

Ethereum Drags Altcoins Forward

Despite Bitcoin dominating weekly inflows, Ethereum and other altcoins posted decent numbers. ETH flows reached $645 million dragging up monthly numbers to $785 million. Recent weeks have been good for the altcoin as YTD flows sit at $1.5 billion. Solana maintained its positive drive recording $23.9 million in the last seven days. The asset dubbed an institutional investor favorite also saw a rise in its ecosystem’s meme coins. 

On a geographical front, the United States dominated this week’s movement with $2.1 billion as users anticipate positive rules. Meanwhile, Hong Kong, Canada, and Australia also recorded inflows. The three jurisdictions posted $27 million, $13 million, and $18.3 million respectively.