- Crypto investment products saw $326 million in inflows globally last week.
- Assets under management have reached almost $38 billion.
- It is the highest level seen since Terra collapsed last May.
Happy Tuesday!
Global digital asset investment products saw significant crypto inflows last week, said alternative asset manager CoinShares in a new report.
This has pushed the total assets under management to levels not seen since the $60 billion Terra stablecoin empire crashed last year.
Let’s dive into it.
$38bn in AUM
Over the last week, $326 million flowed into various crypto investment products around the world — numbers unseen since July 2022, according to a CoinShares report.
The inflows brought assets under management just shy of $38 billion, said CoinShares.
This was the highest point since May 2022, the report indicated — when Terra’s collapse wiped out billions from the crypto market.
CoinShares said investor optimism related to the US Securities and Exchange Commission potentially approving a spot Bitcoin exchange-traded fund drove the increased inflows.
“We do believe a spot-based ETF is now highly likely in the coming months, and will represent a step-change for the industry from a regulatory perspective,” the report said.
ETFs offer investors an affordable and convenient way to bet on the performance of stocks, commodities, and cryptocurrencies. They also tend to be highly liquid.
CoinShares noted that last week was only the 21st largest week of inflows on record, “suggesting continued restraint amongst investors.”
The largest flows came from Canada, $134 million, Germany, $82 million, and Switzerland, $50 million, the report said.
The US, which is a key crypto market, only saw $38 million in inflows — about 12% of the total.
CoinShares attributed this to investors waiting for a US-based spot Bitcoin ETF.
Asia, meanwhile, saw $28 million in flows — its largest weekly inflows on record.
The majority of inflows, about $296 million, went into Bitcoin, but Solana saw some love too, with $24 million in inflows, CoinShares said.
Ethereum, however, saw $6 million in outflows overall. Almost $500 million flowed into investment products since the beginning of October, the report added.
Terra’s co-founders face legal challenges in different parts of the world for their role in the crashed crypto company.
While Do Kwon plotted a comeback as late as January, he is now locked up in a Montenegrin jail after trying to leave the country with fake passports and may face potential extradition to either the US or South Korea.
The trial against his co-founder Daniel Shin started in Seoul this week.
Crypto market movers
- Bitcoin is down 0.3% in the last 24 hours and trading for $34,432.
- Ethereum slumped by 0.5% in the same period of time and is changing hands for $1,801.
- Ripple and Toncoin are up 7.6% and 6.1% respectively.
What we’re reading
- Bankman-Fried concedes that Alameda enjoyed ‘special privileges’ with FTX — DL News
- The UK wants to regulate crypto like financial services in 2024. Here’s what you need to know — DL News
Tom Carreras is a Markets Correspondent at DL News. Got a tip? Reach out at tcarreras@dlnews.com