CoinShares reported on January 27 that nearly $2 billion flowed into crypto investment products last week, bringing the total year-to-date inflows to $4.8 billion.
Bitcoin remained dominant, capturing $1.6 billion, 92% of total crypto investment inflows last week. So far this year, Bitcoin has drawn $4.4 billion in investments. Meanwhile, Short-Bitcoin ETFs saw $5.1 million in inflows, likely driven by traders positioning for possible market pullbacks following Bitcoin’s recent rally, according to CoinShares.
Weekly inflow in crypto ETFs | Source: CoinShares
The U.S. led with $1.7 billion in inflows, followed by Canada with $31 million. Switzerland and Germany recorded $35 million and $23 million in inflows, respectively.
Ethereum saw a strong recovery with $205 million in inflows after a rough start to the year. XRP continued its momentum, attracting $18.5 million following a new all-time high. Smaller altcoins also performed well, with Solana bringing in $6.9 million, Chainlink $6.6 million, and Polkadot adding $2.6 million. James Butterfill, Head of Research at CoinShares, noted a surprising trend:
“no digital asset investment products saw outflows last week.”
The surge in inflows follows a significant rise in trading volumes on centralized exchanges, which hit $25 billion, accounting for 37% of activity on trusted platforms. Butterfill described this as one of the most notable weeks in recent memory, fueled by the growing excitement surrounding Bitcoin’s potential as a strategic reserve asset.
The adoption of Bitcoin as a reserve asset remains a subject of debate. In late January, Pierre Rochard, VP at Riot Platforms, accused Ripple of spearheading a significant lobbying campaign against the Strategic Bitcoin Reserve, alleging that the company is spending millions in efforts to block its implementation. Rochard contended that Ripple is defending its XRP-focused narrative while advocating for state-backed digital currencies. He also pointed out Ripple’s past criticism of Bitcoin mining under the Biden administration. However, Ripple CEO Brad Garlinghouse quickly countered, asserting that the company’s initiatives align with the broader objectives of the Biden administration.
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