Digital asset investments saw a significant boost this week, with an influx of $2 billion recorded, bringing the total to $4.3 billion over the past five weeks. This surge in investment coincided with a remarkable increase in Exchange-Traded Products (ETPs) trading volumes, which shot up by 55% from the previous week to reach $12.8 billion.
The U.S. led the way in this wave of investment, with an impressive $1.98 billion flowing in, including one of the largest single-day inflows ever seen. This financial movement propelled the iShares Bitcoin ETF ahead of the long-standing leader Grayscale, now boasting an Assets under Management (AuM) value of $21 billion. This milestone coincided with the total AuM for digital assets surpassing the $100 billion mark, a peak not seen since March.
Bitcoin remained the star of the show, attracting $1.97 billion in investments. Ethereum also saw a surge in interest, experiencing its best week of inflows since March with a total of $69 million. The renewed interest in Ethereum is likely due to the recent SEC approval of spot-based ETFs.
In the world of altcoins, Fantom and XRP stood out for their positive inflows, with $1.4 million and $1.2 million respectively, according to the CoinShares report. This indicates a growing investor interest in a wider range of cryptocurrencies beyond the major players.
The current rally in digital asset investments is believed to be a direct response to unexpectedly weak macroeconomic data in the U.S., leading to expectations of earlier monetary policy cuts. This financial optimism is evident across nearly all digital asset providers and marks a significant slowdown in outflows from established players.
