While major cryptocurrencies faced bullish and bearish cycles in October, digital asset investment products saw an inflow boom, setting year-to-date highs. Those inflows totaled almost $19 billion, setting a new historical record for crypto ETPs. Bitcoin and Ethereum-based products made up the majority of those inflows, telling the tale of a powerful, sudden shift in investor sentiment.

Bitcoin ETPs experienced impressive inflows of $790 million (76% of overall crypto ETP inflows) just last week. BlackRock's crypto funds played a significant role, attracting $436 million, which represents 42% of all last week's inflows by issuers. Despite the generally sunny pattern, Canada and Brazil had large outflows of $29.3 million and $9.7 million, respectively.

Ethereum's Rising Popularity

Commenting on the report, James Butterfill, Head of Research at CoinShares, said that there was a clear change among investors to support Ethereum. Ether ETPs had a strong week with $225 million in inflows, their eleventh week in a row of positive inflows.

"notable shift in investor sentiment in favour of Ethereum" - James Butterfill

This points to an increasing confidence in Ethereum’s overall potential and its place in the developing digital asset ecosystem.

Bitcoin's Price Swings and Investor Caution

Despite the bullish sentiment, Bitcoin saw large price swings, falling as low as $105,400 before shooting up over $110,000. This volatility seems to have installed a healthy sense of wariness among investors.

"The moderation in inflows suggests that investors are becoming more cautious as Bitcoin approaches its all-time high price levels." - James Butterfill

This indicates a more selective attitude toward the new investment decisions as Bitcoin nears its all-time high valuation.

Analyzing the Inflow Proportions

Butterfill further emphasized how important the current inflow run is, against historical trends.

"On a proportional basis, weekly inflows during this run have averaged 1.6% of AUM, significantly higher than Bitcoin’s 0.8%." - James Butterfill

This should serve as a reminder of the strength, fragility and momentum of the current investment cycle.