Digital asset investment products saw substantial capital inflows last week, with $2.2 billion in new investments. This brings the total capital raised since the beginning of the year to a record $29.2 billion.
This remarkable influx pushed total assets under management (AuM) to over $100 billion for the second time in history, reaching $102 billion. These levels are similar to those seen in early June 2024, according to a recent report from CoinShares.
Trading volumes surged by 67% week-over-week, rising to $19.2 billion, representing 35% of Bitcoin’s total trading on well-known exchanges.
Bitcoin is the Primary Beneficiary
Bitcoin was the primary beneficiary, while short Bitcoin products attracted an additional $8.9 million. In contrast, Ethereum saw only $9.5 million in inflows, with Solana gaining $5.7 million. Other altcoins, such as Polkadot and Arbitrum, recorded smaller inflows.
The U.S. market led the way with the entirety of the $2.2 billion inflow, while Germany saw a modest $5.1 million in new investments.
Analysts suggest that excitement around a potential Republican election victory fueled these inflows, especially early in the week. However, as polling trends shifted, minor outflows were observed on Friday, underscoring Bitcoin’s sensitivity to U.S. electoral dynamics.
On Wednesday, October 30, spot Bitcoin ETFs saw an impressive $893.21 million in net inflows, marking the second-highest total ever recorded.
[COINSHARES] Digital asset inflows hit $2.2B last week, pushing year-to-date total to record $29.2B; Bitcoin leads with $2.2B, Ethereum sees $9.5M$BTC $ETH pic.twitter.com/JU9VZYmfR4
— BecauseBitcoin.com (@BecauseBitcoin) November 4, 2024
BlackRock’s iShares Bitcoin Trust Leads with Over $872 Million in Net Inflows
BlackRock’s iShares Bitcoin Trust led the way, recording more than $872 million in net inflows. As a result, this marks the highest single-day total since its launch in January, surpassing the previous record set on March 12.
As reported, spot Bitcoin ETFs also saw record inflows of $870 million on October 29.
Is a New Bitcoin Price Record Near?
Last week, Bitcoin reached a peak of up to $73,000, just shy of its all-time high (ATH). This has sparked speculation that a significant price surge may be on the horizon.
According to Illya Otychenko from CEX.io, Bitcoin has not yet reached a new ATH due to profit-taking by short-term holders.
He noted that the current consolidation phase, marked by a decrease in trading volume, suggests that a major price movement may be imminent.
Historically, Bitcoin has shown a pattern of double-digit gains after surpassing ATHs, often accompanied by increased volatility.
Current technical indicators, such as the 20-day Exponential Moving Average (EMA) and a Golden Cross recently formed between the 50-day and 200-day Simple Moving Averages (SMAs), indicate a bullish momentum, Otychenko wrote.
However, he noted that the daily MACD signals a possible bearish crossover, suggesting that market participants should remain cautious.
Additionally, inflows into U.S. spot Bitcoin ETFs have risen, hinting at growing interest that could precede significant market movements.
Finally, despite recent profit-taking by short-term holders, long-term investors appear to retain confidence in Bitcoin’s potential, choosing to hold their positions.
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