CoinShares reports one-year high in crypto investment inflows.
Crypto investment products have become attractive to investors once again, as inflows have reached their highest level since July 2022. Last week, European asset management firm CoinShares noted an influx of $199 million, indicating renewed interest in the crypto space. This surge is seen as a correction, compensating for almost half of the outflows observed in the preceding 9 weeks. CoinShares attributed the surge to recent filings for physically backed ETFs from high-profile issuers. The surge in interest is also driven by global asset management giants filing for spot Bitcoin ETFs. In this wave of increased inflows, Bitcoin emerged as the leading investment choice, with Bitcoin-centric investment products receiving inflows of $188 million last week, according to CoinShares. On the other hand, short-bitcoin continued its trend of nine consecutive weeks of outflows, reaching $4.9 million. Ethereum also registered inflows, albeit at a comparatively lesser scale of $7.8 million. Despite the dominance of Bitcoin and Ethereum, there is a visible, albeit minor, flow towards alternative cryptocurrencies such as XRP and Solana, indicating diverse market interest. With the increased inflows, the total assets under management (AUM) across fund managers have reached $37 billion, which is the highest level noted since before the collapse of Three Arrows Capital. The improved market sentiment is also persuading investors towards multi-asset investment ETPs, which saw an inflow of $8 million last week, emphasizing the ongoing diversification of investor interests in the crypto asset class.