Crypto investment inflows hit a one-year high, CoinShares revealed

Crypto investment products are once again proving their market attractiveness, with inflows reaching their highest level since July 2022. European asset management firm, CoinShares, noted Last week alone saw inflows of $199 million, indicating a resurgence of investor interest in the crypto sector.

The bounce is seen as a correction, offsetting almost half of the outflows seen in the last 9 weeks. CoinShares attributed the increase in recent filings to physically backed ETFs from high-profile issuers. In particular, the crypto market is clearly seeing a rebirth of enthusiasm as global asset management giants like BlackRock are filing for spot bitcoin ETFs.

bitcoin takes the lion’s share

In this wave of increased inflows, bitcoin emerged as the undisputed front runner. According to CoinShares, bitcoin-focused investment products saw $188 million inflows last week.

Short-Bitcoin, on the other hand, continued its outflow streak for nine consecutive weeks and reached $4.9 million. These contrarian trends are testimony to the continued attractiveness of bitcoin amid market volatility.

Ethereum also recorded inflows, though on a comparatively smaller scale at $7.8 million. Data from CoinShares shows that there is currently less investor interest in Ethereum than in Bitcoin.

Notably, despite the dominance of Bitcoin and Ethereum, there is a “very slight” flow towards alternative cryptocurrencies such as XRP and Solana. This points to diverse market interest, even if it does not match the scale of the major cryptos.

Better market sentiment is also propelling investors towards multi-asset investment ETPs. These ETPs saw $8 million inflows last week, further emphasizing the ongoing diversification of investor interest in the crypto asset class.

Record high for crypto assets under management

With the increased inflows, the total assets under management (AUM) of the fund managers has also now reached $37 billion. This is the highest level before the collapse of Three Arrows Capital. This underscores not only the resilience of the crypto market, but also the continued confidence that investors have in it.

It is worth noting that along with an increase in crypto investment inflows, the crypto market especially large crypto assets such as Bitcoin and Ethereum recovered from their losses amid the United States Securities and Exchange Commission (SEC) lawsuit against Binance and Coinbase. Seen recovering.

Over the past day, bitcoin saw a slight decline of 0.6%, but its trading price remained above the recently achieved $30,000 benchmark. The past week has seen bitcoin’s market capitalization increase by more than $70 billion, rising from last Monday’s low of $514 billion to more than $580 billion today.

During this, Ethereum has been on the fence without any significant movement in the past 24 hours. The second largest asset by market cap currently has a daily trading volume of over $8 billion and a market cap of $226 billion.

Featured image from Unsplash, chart from TradingView