Crypto Funds Hit $2.2 Billion Weekly Inflow Amid Bitcoin Recent Surge To $93K

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As a seasoned researcher who has witnessed the evolution of the global financial market over the past few decades, I must admit that the recent surge in cryptocurrency investment is nothing short of remarkable. The fact that crypto funds have attracted a whopping $2.19 billion in just one week is truly astonishing.

The global cryptocurrency market continues to attract significant investor interest as crypto investment products recorded a substantial influx of funds last week.

In my analysis, I’ve observed that global crypto funds have experienced a significant surge in investment this week, with a net inflow of approximately $2.19 billion. This influx has catapulted the year-to-date (YTD) net inflows to an all-time high of an impressive $33.5 billion.

As a cryptocurrency investor, I’ve witnessed an impressive influx of investments, and it’s no coincidence that this surge occurred during Bitcoin‘s recent record-breaking rally to an all-time high of $93,477. This bullish trend significantly boosted the total assets under management (AUM) for crypto funds managed by companies like CoinShare, now standing at approximately $138 billion.

Global Distribution Of Crypto Inflows And Key Trends

In simpler terms, most of the recent weekly investments came from U.S.-based funds, amounting to approximately $2.21 billion. Additionally, smaller contributions were made from regions such as Hong Kong ($27 million), Australia ($18 million), and Canada ($13 million).

Contrarily, investors from Sweden and Germany chose to cash out their investments, leading to a total withdrawal of approximately $64.8 million (58M + 6.8M) from these regions. Simultaneously, Bitcoin-related products remained popular worldwide, drawing in a substantial $1.48 billion in new investment over the week.

As Bitcoin’s price skyrocketed, there was a resurgence of interest in it. At the same time, this surge led to an uptick in investment in short-Bitcoin products, attracting a total of $49 million in new investments. This trend suggests that investors are either cautious or taking steps to protect their investments against potential price drops following the recent record highs.

Products built on the Ethereum network, which have encountered difficulties over the past few months, demonstrated indications of a comeback, as they recorded global net inflows totaling $646 million.

James Butterfill, the Head of Research at CoinShares, pointed out that several factors in the market may have contributed to the recent turnaround. Among these were a proposed upgrade for Ethereum called Beam Chain, suggested by researcher Justin Drake, and optimism among investors due to the US elections. Additionally, inflows of Ethereum accounted for 5% of its total assets under management (AUM), suggesting increased confidence from investors.

Behind The Surge

Similar to Ethereum, Buttler observed that the surge in cryptocurrency fund inflows over the past week seems to stem from a combination of market conditions, such as adjustments in U.S. monetary policy and the effects of the Republican party’s broad win in the recent U.S. elections.

Butterfill further revealed that although the week began with $3 billion in net inflows over the first few days, a subsequent $866 million outflows was observed following Bitcoin’s all-time high (ATH).

Discussing Bitcoin’s All-Time High (ATH), after reaching a high of over $93,000 on November 13, there has been a significant drop in Bitcoin’s price since then.

To date, Bitcoin’s value has decreased by approximately 2.8% since its all-time high of $93,477. At present, it is being traded for $90,334, although there has been a minor increase of 0.2% within the last day.

Over the recent days following Bitcoin’s price correction, its daily trading volume has noticeably decreased. Last week, it was worth approximately $70 billion, but today it stands at around $59 billion.

Featured image created with DALL-E, Chart from TradingView

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2024-11-19 10:42