Crypto Funds See Muted $254M Inflows, but There’s a Catch
According to the latest report from CoinShares, the crypto sector has seen a muted $254 million inflow of capital even though the market turned bullish.
Key points:
- Total inflows into digital asset investment products reach $20.5 billion year-to-date.
- The inflows show a mixed picture for various cryptocurrencies.
- Trading volumes spiked to the highest levels since May.
- Bitcoin saw healthy inflows of $519 million.
The report shows that even though there has been a muted inflow, various cryptocurrencies are showing a mixed picture. CoinShares also highlighted that the trading volume has surged to hit the highest levels since May.
The trading volume touched $14.8 billion for the week, primarily due to the Ethereum ETF launch. Additionally, total assets under management touched $99.1 billion, and YTD inflows hit a whopping $20.5 billion.
Bitcoin experiences healthy inflows
According to the data, Bitcoin has experienced healthy inflows of $519 million. This has brought the YTD inflows to $19 billion.
CoinShares also pointed out a few important points that could have triggered renewed investor confidence in crypto. The report stated two reasons: one is the US election comments around Bitcoin as a potential reserve asset. Secondly, the increased possibility of a September FED rate cut.
The primary reason for the varied inflow rate across Bitcoin and Ethereum could be the market slump that followed the launch of the Ethereum ETF.
However, the market is turning bullish, with Bitcoin almost inching towards the $70,000 level.
