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Crypto Funds Have Seen Record Investment Inflow in Recent Weeks
In the last month, weekly inflows to cryptocurrency funds from institutional investors have been breaking records, according to data reported by Reuters.
Updated Sep 14, 2021, 10:39 a.m. Published Dec 8, 2020, 9:23 a.m.
Last week, as bitcoin broke its all-time price high, institutional investors poured the second-highest amount on record into cryptocurrency funds.
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According to a Reuters report citing data from digital asset manager CoinShares on Monday, large-scale cryptocurrency funds saw an inflow of $429 million last week alone. The largest-ever weekly inflow was $468 million seen three weeks ago.
The data showed the sector jumped to an all-time high of $15 billion in assets under management (AUM) for the year so far. By comparison, there was $2.57 billion in AUM at the close of 2019. So far, bitcoin has attracted $4 billion inflows in 2020.
Bitcoin hit an all-time high of $19,920 on Dec. 1 in a sharp rally likely fueled by listed firms making treasury investments in the cryptocurrency, a launch of crypto services by PayPal and bullish billionaire investors.
"We have seen a decisive shift from enquiries of a speculative nature to those that begin with comments such as, ‘bitcoin is here to stay, please help us understand it’,” James Butterfill, investment strategist at CoinShares, told Reuters.
Butterfill also noted that the level of interest is so high, bitcoin is likely only on "the cusp" of institutional adoption.
See also: Guggenheim Fund Files to Be Able to Invest Up to Almost $500M in Bitcoin Through GBTC
Bitcoin and associated investment products were the most popular out of the cryptocurrency options among bigger investors last week. The top cryptocurrency by market value took the lion's share of the total AUM at around 334.7 million out of the $429 million across all crypto assets.
Ether came in second place during the same period. It attracted around $87.1 million, likely from investors wanting exposure ahead of the Ethereum network's launch of the Eth 2.0 Beacon Chain and bullish decentralized finance fundamentals.
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
Ce qu'il:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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