Crypto funds had their best run of inflows since the 2021 crypto bull market as investors keep piling into the market, digital asset management firm CoinShares said in a report on Monday.
Investment vehicles holding cryptocurrencies saw $261 million of net inflows last week, recording six consecutive weeks of positive influx totaling $767 million inflows, according to CoinShares data.
"This run of inflows now matches the July 2023 run of inflows and is the largest since the end of the bull market in December 2021," CoinShares head of research James Butterfill noted.
Bitcoin (BTC) funds still dominate the asset class, bringing in most of the inflows, some $229 million last week and $842 million this year. This is likely supported by the growing odds of a spot-based bitcoin ETF getting an approval in the U.S. and some softer macroeconomic data, Butterfill explained.
Ether (ETH) funds saw their largest inflows – $17.5 million – since August 2022, a sign that investors are warming to the second largest crypto asset after enduring net outflows earlier this year.
Market observers monitor digital asset fund flows as a proxy for demand among institutional investors. The recent stretch of inflows signals rising demand for crypto assets following a brutal bear market headlined by high-profile implosions such as Sam Bankman-Fried's FTX exchange.
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