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, 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.