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The digital asset sector experienced significant activity last week, with a total of $245 million in investment inflows, highlighting a dynamic period for cryptocurrencies. Notably, trading volumes soared to their highest since May, reaching $14.8 billion, propelled by the debut of Ethereum ETFs in the US market. This surge aligns with an impressive uptick in assets under management, now valued at $99.1 billion, with year-to-date inflows hitting an unprecedented $20.5 billion.
Bitcoin continues to dominate, securing additional inflows of $519 million last week alone, bringing its total for the month to $3.6 billion and a staggering $19 billion for the year. This robust growth is largely credited to optimistic sentiments surrounding its potential role in future strategic reserves and speculation about upcoming federal rate cuts in September 2024.
The newly launched US spot-based Ethereum ETFs also saw remarkable interest, drawing $2.2 billion in inflows, marking the most substantial since December 2020. Despite this, Ethereum’s trading volumes and the market dynamics faced challenges from ongoing outflows in existing trusts, netting a slight outflow of $285 million last week. Nonetheless, the overall market trend remains overwhelmingly positive, underscoring strong investor confidence in the future of cryptocurrencies.
