Crypto Trading Volumes Hits Record High Last Week

Last week witnessed an unprecedented milestone in the cryptocurrency market as trading volumes for exchange-traded products (ETPs) soared to a record-breaking $17.5 billion. This remarkable achievement, a significant leap from the $2 billion weekly average in 2022, reflects a burgeoning investor interest and confidence in the crypto markets.

CoinShares reported a substantial influx of $1.18 billion in digital asset investment products during the same week, though it fell short of the record set by futures-based Bitcoin ETFs in October 2021, which reached $1.5 billion. The surge in weekly crypto asset flows is primarily attributed to the approval of spot Bitcoin exchange-traded funds (ETFs) by the US Security and Exchange Commission (SEC). Industry leaders, including Mati Greenspan, CEO of Quantum Economics, anticipate a substantial increase in institutional adoption with the approval of Bitcoin ETFs.

🟢 ETF approval week inflows: US$1.18 billion.
The record set at the launch of the futures-based #Bitcoin ETFs is not broken, but inflows are significant.

↔️ ETP trading volumes, on the other hand, broke a record, trading US$17.5 billion.

— Main beneficiaries —$BTC: US$1.16… pic.twitter.com/fA0xAwQQer

— CoinShares (@CoinSharesCo) January 15, 2024

The United States led the influx with a total of $1.24 billion, followed by Switzerland with $21 million. However, Europe and Canada experienced minor outflows, with Canada, Germany, and Sweden witnessing outflows of $44 million, $27 million, and $16 million, respectively.

Bitcoin Attracts $1.16 Billion Inflows, Diversified Interest in Other Cryptocurrencies

Last week, Bitcoin, the leading cryptocurrency, witnessed notable inflows of $1.16 billion, constituting a substantial 3% of its total assets under management (AuM). Even short-Bitcoin products experienced minor inflows, totaling $4.1 million.

Positive inflows were not limited to Bitcoin, as Ethereum secured $26 million, XRP drew in $2.2 million, and Solana saw a modest inflow of $0.5 million. This diversified interest across various digital currencies indicates a maturing market, with investors spreading their investments across different assets.

Beyond individual cryptocurrencies, blockchain equities also garnered significant attention, accumulating inflows of $98 million last week. This brings the total inflows over the past seven weeks to an impressive $608 million.