Crypto ETPs reach $3.85B inflows as Bitcoin exceeds $100K

The cryptocurrency market achieved significant milestones last week, highlighted by Bitcoin (CRYPTO:BTC) surpassing the $100,000 mark for the first time. 

According to a report from CoinShares, cryptocurrency investment products experienced record inflows of $3.85 billion during the trading week of December 2 to 6.

This surge follows a previous record of $3.12 billion set in November when Bitcoin was trading around $98,000.

The new inflow high coincided with Bitcoin reaching an all-time peak of $104,000 on December 5.

Bitcoin investment products led the inflows with $2.5 billion, contributing to a total of $36.5 billion in year-to-date inflows.

Short Bitcoin investors remained relatively inactive last week, with short BTC products attracting only $6.2 million in inflows.

James Butterfill, head of research at CoinShares, noted that historically, higher inflows follow sharp price increases, indicating that investors are cautious about betting against the current bullish trend.

Ethereum (CRYPTO:ETH) also saw substantial growth in investment products, with inflows reaching $1.2 billion—the highest weekly inflows recorded since the launch of Ethereum exchange-traded funds (ETFs) in the U.S. in July.

This increase occurred as Ether surged past $4,000 on December 6.

Butterfill remarked that the spike in Ethereum ETF investments came at the expense of Solana, which faced outflows totaling $14 million for the second consecutive week.

Additionally, blockchain equities attracted $124 million in inflows, marking the largest amount since January, driven by increased investor confidence in Bitcoin miner profitability.

Overall, 2024 has been a remarkable year for cryptocurrency ETFs following the launch of spot Bitcoin ETF trading in January.

As of December 6, Bitcoin ETF holdings surpassed 1.1 million BTC for the first time, exceeding those held by Satoshi Nakamoto, the pseudonymous creator of Bitcoin.

At the time of reporting, the Bitcoin price was $97,264.01.