Confidence in the digital asset industry has significantly increased amid the ongoing adoption of Bitcoin by nation-states and institutional investors.
The mainstream adoption of digital assets and Web3 protocols has surged in the recent past following the re-election of Donald Trump in the United States earlier last month. More institutional investors have added Bitcoin BTC $87 153 24h volatility: 3.4% Market cap: $1.73 T Vol. 24h: $18.75 B as a strategic reserve asset to fight the high inflation and ongoing fiat devaluations.
As a result, Bitcoin price recently reached a major milestone of above $100K for the first time since its inception. Meanwhile, the altcoin industry has gained significant bullish momentum after Ethereum ETH $2 092 24h volatility: 3.9% Market cap: $252.20 B Vol. 24h: $12.40 B rebounded above $3,800 and the TOTAL2 surged to its all-time high of above $1.57 trillion.
Major Cash Inflows to Digital Asset Investment Products Last Week
According to market data provided by CoinShares, the digital asset investment products registered a net cash inflow of about $3.85 billion during the first week of December. Following the largest weekly cash inflow, the total cash inflows YTD surged to $41 billion, thus pushing the assets under management to hover about $165 billion.
As expected, Bitcoin’s investment products led to notable cash inflows last week of about $2.54 billion. As a result, the total assets under management for Bitcoin’s investment products have surged to over $132 billion. The notable cash inflows in the spot Bitcoin ETFs of about $2.73 billion, led by BlackRock’s IBIT, heavily influenced last week’s performance.
Ethereum’s investment products registered the highest cash inflows last week of about $1.159 billion, thus increasing the total assets under management to about $19.6 billion. The impressive performance of US spot Ether ETFs, led by BlackRock’s ETHA with a net cash inflow of over $572 million, largely influenced the record weekly inflows.
According to CoinShares, the poor performance of Solana’s investment products in the past two weeks, an overall outflow of about $14.1 million last week, has significantly favored Ethereum.
Meanwhile, Ripple Labs-backed XRP XRP $2.46 24h volatility: 3.3% Market cap: $143.32 B Vol. 24h: $2.88 B registered more than $134 million in total cash inflows last week, thus raising its assets under management to over $732 million.
The rising demand for XRP, as shown by the several filings of spot ETF products in the United States, has favored notable cash inflows and impressive performance.
Regionally, the United States, Switzerland, and Germany led in notable cash inflows of about $3.6 billion, $160 million, and $116 million respectively.
Bigger Picture
The rising adoption of digital assets by institutional investors has fueled the ongoing 2024 bull market. More institutional investors led by MicroStrategy Inc (NASDAQ: MSTR) and Riot Platforms Inc (NASDAQ: RIOT) have adopted Bitcoin as a hedge against fiat devaluation and rising inflation.
As a result, Wall Street experts believe that Bitcoin is well-positioned to outshine Gold in market cap over the coming years. Moreover, more governments view Bitcoin as a digital gold with more use cases.
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