Crypto Investment Products See Strong Inflows Despite Price Volatility

Cryptocurrency investment products registered a strong rebound last week, attracting $2.48 billion in inflows and reversing the previous week’s $1.4 billion outflows, according to CoinShares data released on Monday. The renewed investor appetite comes despite continued turbulence in the broader crypto market, where both Bitcoin and Ether saw significant price drops.

Bitcoin, which briefly crossed $113,000 earlier in the week, slipped below $108,000 as volatility weighed on the market. Ether mirrored this decline, tumbling under $4,300 after starting the week above $4,600, reflecting uncertainty despite strong institutional inflows.

Spot Ether ETFs Lead Inflows

While the total inflows highlighted a positive turnaround, they remained far from the $4.4 billion record set in July. A large share of last week’s gains came from spot Ether ETFs, which secured $1.4 billion in inflows and continued to dominate the market. Bitcoin funds attracted $748 million, signaling steady but more modest investor confidence in the world’s largest cryptocurrency.

However, the streak of continuous inflows was broken by Friday, when both Bitcoin and Ether ETFs registered outflows. Data from SoSoValue showed this ended Ether’s six-day streak of inflows and Bitcoin’s four-day streak, suggesting that investor sentiment remains cautious amid broader macroeconomic concerns.

Meanwhile, alternative assets like Solana and XRP enjoyed increasing momentum. Solana logged $177 million in inflows, while XRP attracted $134 million, boosted by growing speculation that U.S. regulators may soon approve ETFs tied to these assets. 

Adoption Outlook and Long-Term Growth

Amid the market’s short-term swings, longer-term adoption trends remain strong. Former hedge fund manager and macro investor Raoul Pal projected that global crypto users could reach 4 billion by 2030. 

In an X post on Sunday, Pal compared the growth of crypto adoption with the internet’s trajectory, noting that the crypto user base has grown by 137% annually over the past nine years, reaching an estimated 659 million by the end of 2024.

By comparison, the internet counted 187 million users at the end of 2000, growing at a 76% annual rate. Pal expects crypto adoption to moderate to a 43% growth rate next year, but still predicts that by 2030, one in eight people worldwide could be active crypto users.