Home > NEWS > Traditional finance fears drive digital asset investment inflows to $160M

Traditional finance fears drive digital asset investment inflows to $160M

According to CoinShares, crypto investment products experienced weekly inflows of $160 million, the largest since July 2022.

CoinShares, an European digital currency investment management company, released the latest liquidity report of digital equity funds on March 27th, announcing that digital assets have once again attracted the attention of investors with growing anxiety about existing financial stability.

According to the report, digital asset investment wealth management products experienced inflows of $160 million last week, the largest since July 2022, indicating a significant reversal after six weeks of cumulative outflows of $408 million. Although capital inflows are relatively late compared with the wider password sales market, investors are increasingly worried about the reliability of the traditional financial sector, the report said.

The investment in the project comes from a number of countries, including the United States, France and Canada, each injecting US $69 million, US $58 million and US $26 million.

According to the report, BTC (BTC) goods received an inflow of US $128 million, mainly because customers saw it as a "haven of the soul" for the first time. However, not all investors agree with this view, due to bearish BTC commodities are also 31 million dollars in inflows. Even so, short BTC is still the investment wealth management product with the largest capital inflows in recent years, although it is not the best-performing commodity in terms of price.

On the other hand, ETH goods experienced a capital outflow of $5.2 million last week, the third consecutive week of capital outflows. The report attributes the trend to investor unease about the rise in Shanghai ratings. There have also been inflows in a variety of alternative currencies, with Solana's SOL (SOL), Polygon's Ma Jiqi (Ma Ji Qi) and XRP (XRP) attracting assets of $4.8 million, $1.9 million and $1.2 million respectively.

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All in all, although the report stresses that growing anxiety about existing financial stability is due to many people's growing interest in digital assets, as many investors are beginning to see the sector as a "haven of the soul".

In addition, according to the experimental data of new project portfolio funds obtained by the US Financial Times, in the past few weeks, many investors have alternated her asset allocation because of the difficulties of commercial banks. As a result, more than $286 billion has flowed into US money market funds since March.

The influx of assets into money market funds can be attributed to anxiety about the reliability of the financial system, as US and European banks suffer liquidity restrictions as a result of tighter monetary lending policies. In the absence of a clear phase, money market funds are the preferred investment for many people because they give high liquidity and low to medium risk. At this stage, because the Federal Reserve (Federal Reserve) continues to raise interest rates to curb inflation, such equity funds offer some of the best returns for many years.

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by Judith BannermanQuist
© 2023 WJB All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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