Recent data suggests a revival in the flow of capital into crypto investment funds, following a brief pause a fortnight ago. CoinShares’ latest report supports this assertion. The past week saw a net inflow of $103 million into digital assets, as per James Butterfill, CoinShares’ Research Head. This inflow, occurring amidst a period of bullish sentiment in the broader crypto sphere, marks a shift from the net outflows observed in digital asset investment funds two weeks prior.
The Rebound of Crypto Fund Inflows
The crypto asset investment funds had experienced a slight net outflow of $16 million two weeks ago, breaking an 11-week streak of continuous inflows since September. However, Butterfill’s social media update reveals a turnaround with a net inflow of $103 million last week. As anticipated, Bitcoin led the rally, accounting for 85% of the total inflow. Bitcoin’s inflow last week amounted to $87 million, bringing its total net inflow for the year to a whopping $1.758 billion.
Performance of Altcoins
Ethereum topped the altcoin market with a net inflow of $7.9 million, raising its total net inflow for the year to $23 million. Solana followed closely with a net inflow of $6 million. At the time of writing, Solana’s total inflow for the year stands at $162 million, a testament to the positive sentiment it has elicited from institutional investors this year. Conversely, Litecoin and Avalanche were the only investment products to register a net outflow during the week, with $0.4 million and $2.6 million respectively.
From a geographical perspective, Germany led the pack with inflows of $41.6 million, followed by Canada with $25.8 million, the USA with $20.4 million, and Switzerland with $15 million. Sweden, on the other hand, saw a net outflow of $8.7 million.
Current Market Conditions
The total assets under management now stand at $52 billion, which constitutes 31% of the entire crypto market cap of $1.65 trillion. A majority of this is traded in the United States, with US-based investment funds managing assets worth $37.8 billion.
Investment in digital asset funds is largely influenced by the sentiment surrounding spot market prices. Therefore, the net inflows last week mirrored the price surge led by Bitcoin, which crossed the $44,000 mark several times during the week. However, Bitcoin has since corrected and is currently trading at $42,390.
Despite Ethereum’s lead in the altcoin market, Solana has outperformed it since October. The crypto has seen a 53% increase in a 7-day timeframe, reaching a yearly high of $124.92 on Christmas day. At the time of writing, Solana is trading at $114.
For those interested in tracking these market trends and investment flows, the cryptoview.io application can be a valuable tool. It provides a comprehensive view of the crypto market, making it easier for investors to make informed decisions.
