Crypto Asset Funds See Record Inflow Since July 2022
CoinShares’ latest weekly report reveals a surge in institutional interest in crypto funds, with a noteworthy $326 million invested in them during the past week, marking the highest volume since July 2022.
The primary target for attracting capital has been Bitcoin, with a substantial $296 million invested into this leading cryptocurrency. Notably, Solana emerged as the second most favoured asset, garnering around $24 million in investments, making it the top choice among altcoins.
Furthermore, it’s worth highlighting that investors are diversifying their strategies by not only counting on price increases but also on price decreases, with more than $15 million invested in corresponding products that benefit from falling prices.
The report also indicates a withdrawal of funds from multicurrency crypto trusts, totaling $5.2 million, and Ethereum-based funds, amounting to $6 million.
CoinShares analysts have highlighted that a mere 12% of crypto investments originate from the United States, with the majority of funds pouring in from investors in Canada ($134 million), Switzerland ($50 million), and Germany ($82 million). Notably, North America maintains its position as the global leader in crypto usage, with the United States taking the top spot in the world.
The influx of funds from the Asian region has witnessed a substantial increase, with a remarkable $28 million being invested in crypto funds, marking a record in the region’s history of crypto investments.
This surge in interest in crypto funds can likely be attributed to the anticipation of the approval of a Bitcoin spot ETFs in the United States, a possibility JPMorgan analysts believe could materialise before January 10. Fred Thiel, the head of Marathon Digital, shares this optimism, emphasising the favourable chances of these products receiving approval.
Notably, experts from Cryptogambling.tv have reported a significant boost in worldwide search queries for “Buy Bitcoin” in recent times, underscoring the growing global interest in crypto investments.