Cryptocurrency Investment Funds Experience Record Inflows, AUM Reaches $67 Billion
Cryptocurrency investment funds have seen a significant increase in inflows, reaching a record $2.45 billion in the last seven days. This surge in institutional investments is attributed to the approval of spot Bitcoin ETFs by the SEC. The total value locked (TVL) and assets under management (AUM) in the cryptocurrency market have also experienced growth, with AUM reaching its highest position since December 2021 at $67 billion. Bitcoin dominated the inflows, accounting for 99% of the total figure, with inflows of $2.42 billion last week alone. Altcoins also saw inflows, with Ethereum recording $21 million and other coins like Solana, Avalanche, Chainlink, and Polygon seeing smaller inflows.
Bitcoin Leads the Way with Institutional Inflows
Bitcoin products accounted for the majority of institutional inflows in the past week, with $2.42 billion coming into BTC-related investments. Since the approval of Bitcoin ETFs on January 10th, investors have been increasing their exposure to the leading cryptocurrency. Bitcoin’s AUM has now reached $49 billion, solidifying its dominance in the market.
Altcoins Also See Inflows
Institutional activity around Bitcoin spilled over into altcoins as well. Ethereum recorded $21 million in inflows, bringing its yearly total to $34 million. Positive sentiments surround Ethereum due to activities related to a spot Ethereum ETF in the United States. Other altcoins like Solana, Avalanche, Chainlink, and Polygon also saw inflows ranging from $0.9 million to $1.6 million.
Majority of Inflows in the United States
The United States received the majority of institutional inflows, with $2.4 billion invested in spot-based ETFs. Switzerland and Germany also saw significant inflows, while Canada experienced net outflows.
Hot Take: Cryptocurrency Investment Funds Thrive as Institutional Interest Grows
The influx of institutional investments into cryptocurrency investment funds highlights the growing interest and confidence in the market. The approval of Bitcoin ETFs has opened up new avenues for investors to gain exposure to cryptocurrencies. With the total value locked and assets under management reaching new highs, it is clear that institutional players are recognizing the potential of cryptocurrencies as an asset class. As more countries approve spot-based ETFs, we can expect to see further growth in inflows and increased institutional participation in the cryptocurrency market.
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