Crypto Funds Hit All-Time High Inflows of $29 Billion—Can This Growth Be Sustained?
The post Crypto Funds Hit All-Time High Inflows of $29 Billion—Can This Growth Be Sustained? appeared on BitcoinEthereumNews.com.
This year has seen a major surge in inflows for crypto investment products, hitting an annual record of $29.2 billion, as revealed by a recent report from CoinShares. Weekly net inflows for the past week alone reached $2.18 billion, driven by various market factors and influenced significantly by the political climate in the United States. Bitcoin Leads In Inflows, US Funds Dominate Market CoinShares’ report highlighted that the substantial inflows, combined with price increases across major cryptocurrencies in recent months, have driven the total assets under management in crypto funds above the $100 billion mark. This is only the second time crypto funds have reached this level, last seen in June at a peak of $102 billion. Weekly trading volumes also surged by 67% to $19.2 billion, representing around 35% of Bitcoin’s trading volume on major exchanges. The report noted a distinct preference for Bitcoin among investors, with Bitcoin-related investment products accounting for $2.16 billion of the total global weekly net inflows. US-based funds primarily contributed to last week’s net inflows, adding $2.23 billion. Other regions, such as Canada, Germany, and Switzerland, observed slight outflows, with Canadian funds seeing $24.4 million, German funds at $20.3 million, and Swiss funds at $13.8 million in net weekly outflows. Crypto asset fund flows by region. | Source: CoinShares In addition to standard Bitcoin investment products, the report indicated that short-Bitcoin products saw inflows of $8.9 million, suggesting that some investors are hedging against potential downside risks in Bitcoin’s performance. Aside from Bitcoin, other assets like Ethereum also experienced inflows, albeit at a significantly lower volume. Ethereum-based investment products registered $9.5 million in net inflows over the week, but the report highlighted that the overall sentiment around Ethereum remains less optimistic than Bitcoin and Solana. Crypto asset fund flows by region. | Source: CoinShares…
Filed under: News - @ November 5, 2024 3:06 am