Investors continue to pour money into cryptocurrency investment products, with the total amount invested climbing for a fourth consecutive week. According to data from CoinShares, digital asset investment products received net inflows of $114 million last week, with bitcoin-related products receiving the lion’s share of that new money at $104 million. The surge in bitcoin investment comes as the cryptocurrency crossed $30,000 for the first time since June 2022. CoinShares noted that the focus on bitcoin-related products reflects a “flight to safety” by investors concerned about traditional finance challenges. Over the past four weeks, inflows into digital asset investment products have reached $345 million.
While bitcoin remains the dominant cryptocurrency, ether-related products saw only $300,000 of net inflows last week, despite the successful completion of the Shanghai upgrade. That upgrade helped push the price of ether above $2,000 for the first time since August 2022.
In addition to cryptocurrency investment products, blockchain-related equities also received attention from investors last week. The CoinShares report shows that these equities received net inflows of $5.8 million, bringing total assets under management to $1.9 billion. This is the highest level since October 2022, prior to the collapse of crypto exchange FTX.
The continued rise in cryptocurrency investment products is a reflection of growing investor interest in digital assets. As traditional finance faces ongoing challenges, many investors are turning to cryptocurrencies as a way to diversify their portfolios and hedge against inflation. However, the volatility of cryptocurrencies remains a concern for some investors, and regulators are closely monitoring the space to ensure that investors are protected.
Despite these concerns, the overall trend in cryptocurrency investment remains positive. With rising prices and growing interest from institutional investors, the future of digital assets looks bright. However, investors should always exercise caution and do their due diligence before investing in any asset, including cryptocurrencies.