Crypto: funds explode to +13.8 billion dollars – A historical record!

2024 is shaping up to be a record year for cryptocurrencies. According to CoinShares, crypto funds have reached an investment level never seen before. Just last week, for example, there was an increase of 646 million dollars.

According CoinShares, last week saw an inflow of $646 million into digital asset investment products. The total inflow for this year has reached a record high of $13.8 billion. Bitcoin inflows amounted to $663 million, while short Bitcoin investment products experienced outflows…

— Wu Blockchain (@WuBlockchain) April 8, 2024

Bitcoin remains the most popular crypto

According to statistics, about 663 million dollars were invested in Bitcoin investment products last week. This dominance is explained by the perception of the crypto Bitcoin (BTC) as a store of value and a reliable investment asset.

However, there is a trend towards diversification, with increasing investments in other cryptocurrencies such as Litecoin, Solana, and Filecoin. This diversification reflects:

• the growing maturity of the cryptocurrency market,
• the search for potentially higher returns in the field of cryptography.

Interest in cryptocurrencies is not uniform across the world

According to the CoinShares report, the United States, Brazil, Hong Kong, and Germany are registering significant inflows. Switzerland and Canada, on the other hand, are experiencing outflows.

Institutional crypto adoption is also accelerating with major players like BlackRock and Morgan Stanley. BlackRock recently added five new participants to its iShares Bitcoin Trust (IBIT) ETF. Morgan Stanley, for its part, plans to approve Bitcoin ETFs on its platform in the coming week.

Key factors driving this enthusiasm for crypto assets

Several factors contribute to the record influx of capital into crypto funds:

• The bullish performance of Bitcoin: The price of Bitcoin has risen by more than 50% since the start of the year, which has attracted the attention of traditional investors.

• The expansion of crypto investment products: The proliferation of Bitcoin ETFs and other investment products makes it easier for investors to access cryptocurrencies.
• The growing awareness of the benefits of crypto assets: Investors are increasingly recognizing the advantages of cryptocurrencies (decentralization, security, transparency…).
• Global economic uncertainty: Inflation and geopolitical tensions are prompting investors to seek alternatives to traditional markets.

The record influx of capital into crypto funds in 2024 thus confirms the growing interest of investors in digital assets.