According to CoinShares, cryptocurrency investment products have seen $37 million in inflows over the previous week.
This is a record high for the crypto asset class and indicates institutional investor interest in digital currencies.
The survey indicated that Bitcoin and Ethereum accounted for nearly 85% of cryptocurrency investment product inflows.
Notably, this is the first time since December 2017 that Bitcoin investments have exceeded $10 million. Ethereum investments reached their highest levels since April 2019.
Grayscale’s Ethereum Trust also received record-breaking inflows of $17 million, its largest since its debut five years ago.
Many investors were quick to jump on the bandwagon after news of a surge in stock market investments hit the headlines.
According to recent reports, trading volumes for stocks and ETFs were 12 percent higher than last month. Many saw this as a sign of investor mood turning bullish, which was good for the markets.
However, a staggering 68% were directed toward short investment instruments, indicating a pessimistic market mood.
These products allow investors to wager against stocks or industry sectors and make money even when prices decline.
While trade volume has increased, many traders expect the markets to lose more before they recover from their present fall.
Recent Growth in Cryptocurrencies Is Exponential
The cryptocurrency space has grown exponentially recently, with altcoins becoming increasingly popular. This week, many of the top altcoins saw a surge in activity as investors poured money into them.
According to CoinMarketCap, Ethereum, Polkadot, Cardano, XRP, and Avalanche received $4.2 million, $1.0 million, $0.6 million, and $0.5 million, respectively.
Blockchain technology’s potential uses in banking, finance, health care, and supply chain management undoubtedly drove this financial inflow.
Blockchain technology has been gaining traction recently, attracting investors’ attention. This week, 7 million U.S. dollars was invested in blockchain shares.
The investment spree has been largely due to the increased stability and security that blockchain technology offers its users.
Leading organizations in the industry have started using blockchain, which is growing more popular in institutional and retail circles.
Blockchain’s future seems bright for developers and users, despite initial mistrust from traditional investors. Bitcoin users have reason to celebrate, as last week proved successful for the cryptocurrency.
Short Bitcoin investment products had net inflows of $25.5 million, while Bitcoin net inflows totaled $5.7 million.
This is the greatest weekly inflow since July 2022, when $51 million in fresh money were registered in the same category.
The strong performance of Bitcoin last week signals an increase in faith among investors regarding its long-term prospects.
Despite Market Volatility and Global Economic Uncertainty
For growth and stability despite recent market volatility and global economic uncertainty caused by the coronavirus pandemic.
It may indicate that more individuals are aware of its advantages over traditional assets like stocks, bonds, and commodities. The sentiment is split across different regions regarding investment products.
Germany and Switzerland have attracted the most significant inflows in Europe, totaling $14m and $10m, respectively. This suggests that sentiment towards these countries is positive.
On the other hand, short investment products in Europe experienced outflows, indicating overall optimism from investors.
In stark contrast, Hong Kong has experienced outflows in long-term investment products worth $11m. This indicates that sentiment towards investing in Hong Kong is less strong than before.
Due to market instability and uncertainty regarding their regional investments, investors are holding back.
Investor sentiment is mixed across regions, with some exhibiting optimism and others apprehensive. Bitcoin has seen an impressive comeback in the past few weeks, with prices soaring to over $23,000.
The world’s top digital currency had been stuck in the low $20,000s since its December 2017 high of $20k. Before shorting Bitcoin on the idea that it won’t last, investors should evaluate numerous aspects.
First, institutional investor interest and public recognition of cryptocurrencies as an asset class may be driving Bitcoin’s price increase.
Second, stimulus initiatives from governments worldwide may boost Bitcoin prices even more.