Bitcoin-linked investment funds saw an inflow of $116 million last week as the flagship cryptocurrency has managed to maintain gains and remain stable so far this year.
as per monday report good Digital asset investment products by digital investment company CoinShares saw $117 million inflows last week, with bitcoin accounting for $116 million. The report states that this is the largest digital asset since July 2022.
There is a strong inflow into investment funds linked to bitcoin as the leading cryptocurrency has managed to maintain its recent gains. Bitcoin is up 42% year-to-date, and is up 39% over the past 30 days. The coin is currently trading above the $23,000 mark, which was last seen in mid-August 2022.
Meanwhile, CoinShares revealed that the cumulative assets under management (AUM) of crypto funds have increased by 43% from the November 2022 low to $28 billion. Added to report:
“Investment product volume continues to improve with $1.3 billion traded for the week, 17% higher than the YTD average, while the broader digital asset market saw an 11% increase in average weekly volume. Only 1.4% of the total volume remains on Trusted Exchanges.”
On the other hand, multi-asset investment products saw outflows of $6.4 million for the 9th consecutive week, indicating that investors are becoming more selective. “This was evident in altcoins as Solana, Cardano and Polygon all saw inflows, while Bitcoin Cash, Stellar and Uniswap all saw minor outflows,” the report said.
In terms of geography, Germany saw the largest inflows, accounting for 40% of all inflows, or $46 million. It was followed by Canada, the United States and Switzerland, which saw inflows of $30 million, $26 million and $23 million, respectively.
Funds flow can be a good measure of how institutional investors move their money. Generally, it is safe to assume that strong inflows lead to more inflows and can push prices up. Conversely, strong outflows can lead to a fall in prices.
A report from CoinShares earlier this month showed that digital asset inflows reached $433 million last year, the lowest since 2018. According to the report, bitcoin and multi-asset investment products saw the strongest demand, registering inflows of $287 million and $209 million, respectively. ,
2023 has been a strong year in terms of adoption for bitcoin and the wider crypto market. Just last week, New York State announced A bill that would allow agencies to accept bitcoin and some other cryptos as payment for fines, civil penalties, taxes, fees and other state-imposed payments.
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