The flow of crypto funds has already exceeded the $5 billion mark!
According to the latest weekly report from CoinShares Research, capital inflows into crypto investment products totaled $598 million last week. This marks the fourth consecutive week of net inflows, bringing the total inflows since the start of the year to over $5.7 billion.
![Crypto Bitcoin](https://www.cointribune.com/app/uploads/2024/02/CA5F6AFF-1473-47F1-9748-5611E7FB2E93-1024x683.jpeg)
Crypto, sustained inflows despite volatility
The crypto market remains volatile in 2024, and the price of Bitcoin frequently moves by more than 10% in just a few days. Nevertheless, institutional investors do not seem deterred by these fluctuations and continue to allocate significant funds to this sector.
This appetite for risk is explained by the high potential return of crypto assets over the long term. Even after the bear market debacle of 2022-2023, they are perceived as a promising investment class for diversifying a portfolio.
The central role of the United States
Unsurprisingly, the United States remains the dominant market for crypto investment products.
The appetite of American investors for cryptos is confirmed, despite the setbacks of the giant Grayscale, which registered millions in net outflows last week. Its flagship products, like Grayscale Bitcoin Trust, suffer from the competition of new regulated investment vehicles.
But overall, the depth of the U.S. institutional market and its historical penchant for technological innovation continue to position the United States as a leader in crypto adoption.
Bitcoin dominates, ETH holds strong
Unsurprisingly, Bitcoin captures the bulk of the crypto capital inflows, totaling $570 million last week. Its position as the leading cryptocurrency and its image as « digital gold » make it a favored choice for institutions. The funds allocated to BTC since January have already exceeded $5.6 billion.
Ethereum also maintains its status as the second favorite cryptocurrency among investors, with $17 million in net inflows last week. The prospect of the « merge, » which will see the ETH blockchain shift to a more efficient validation mechanism, enhances its technological image.
On the other hand, the Solana network suffered from technical bugs, resulting in $3 million in net outflows. These issues remind us that despite their potential, emerging blockchains remain risky bets for investors.
The figures from the CoinShares report show that institutional interest in crypto remains strong at the beginning of 2024, despite an unfavorable macroeconomic environment. This confidence reflects the perceived long-term potential and suggests a continuous adoption by traditional investors.
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Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
Les propos et opinions exprimés dans cet article n'engagent que leur auteur, et ne doivent pas être considérés comme des conseils en investissement. Effectuez vos propres recherches avant toute décision d'investissement.