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 year-to-date total to over $5.7 billion.

Crypto, sustained inflows despite volatility 

The crypto market remains volatile in 2024, with Bitcoin’s price frequently moving more or less 10% in a few days. Yet, institutional investors do not seem to be scared off by these fluctuations, and continue to allocate significant funds to this sector.

This risk appetite is explained by the high return potential of crypto assets in the long term. Even after the bear market debacle of 2022-2023, they are still viewed 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 troubles of giant Grayscale, which experienced millions in net outflows last week. Its flagship products, like the Grayscale Bitcoin Trust, suffer from the competition of new regulated investment vehicles.

Overall, the depth of the American institutional market and its historical penchant for technological innovation continue to make the United States the leader in crypto adoption. 

Bitcoin dominates, ETH holds strong

Not surprisingly, Bitcoin captures the majority of crypto capital inflows, totaling $570 million last week. Its position as the leading cryptocurrency and its image as “digital gold” make it a preferred choice for institutions. Funds allocated to BTC since January have already exceeded $5.6 billion.

Ethereum also maintains its status as the second favorite crypto of investors, with $17 million in net inflows last week. The prospect of the “merge,” which will see the ETH blockchain transition to a more efficient validation mechanism, strengthens its technological image.

In contrast, the Solana network suffered from technical bugs, leading to $3 million in net outflows. These issues remind us that despite their potential, emerging blockchains remain risky bets for investors.

The figures in the CoinShares report show that institutional interest in crypto remains strong at the start of 2024, despite an unfavorable macroeconomic context. This confidence is testament to the perceived long-term potential and suggests a continuation of adoption by traditional investors.