Huge Inflows for Crypto Investment
Capital Inflows into digital asset investment products reached USD 180m last week according to the weekly survey from Coinshares. The figure marks a decline from the previous week when fund inflows reached their highest level since 2021, USD 244m.
Despite the week-on-week decline, last week’s inflows were still the second-highest since the start of the year and confirm the strong interest in digital assets from European investors.
Coinshares’ data shows that 62% of last week’s inflows came from Europe, with Switzerland, Germany, and the United Kingdom accounting for the bulk of the investments.
The fund inflows into cryptocurrency-regulated portfolios were backed not only by bitcoin (BTC) but also by several other crypto assets.
Ether (ETH), XRP, Bitcoin Cash (BCH), Litecoin (LTC), and Stellar Lumens (XLM) all saw inflows last week. In terms of specific assets, bitcoin-backed assets were by far the largest last week with s total of USD 144m recorded as investments. Ethereum (ETH) followed behind with USD 23m, and Solana (SOL) next with fund inflows for the week amounting to USD 8.2m.
The total value of all assets under management (AuM) in cryptocurrency-regulated portfolios also grew last week and is now just below USD 2bn. This marks a new all-time high for the industry, which has seen a rapid increase in interest and investment over the past year.
The Coinshares report also said that short-position-bitcoin funds (These are investment values that will increase as the value of bitcoin decreases) – saw capital inflows of about USD 1m the last week. The latest inflows from last week bring the total investment to USD 9m for short-bitcoin funds, according to CoinShares.
Interestingly, last week’s inflows were driven by European investors, who contributed about USD 5.4m. This is the first time that Europe has seen such a large inflow into cryptocurrency investment products. The United States was the second-largest contributor with an inflow of about USD 2.6m