Over the last week, cryptocurrency investment funds saw a jump in Assets Under Management (AUM) of about $2.45 billion.
The cryptocurrency market witnessed enormous institutional inflows last week, according to a new CoinShares Digital Asset Fund Flow Report.
Once the US Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs this year, institutional investors began to ramp up their market activity.
The $2.4 billion that flowed into crypto products last week was a new weekly high. The total inflows for the year so far amount to $5.2 billion, thanks to this latest spike.
Investment assets under management and total value locked (TVL) in cryptocurrencies both increased this week, which had a noticeable effect on the market. At $67 billion, cryptocurrency AUM is at its highest level since December 2021.
Rising prices and a massive influx of capital from institutions have been the primary drivers of this year’s rise in AUM. With a daily volume of $67 billion, the market capitalization is $1.97 trillion.
The research claims that investors cashed out $167 million worth of blockchain shares. In the last week, institutional products related to Bitcoin accounted for 99% of all inflows, as predicted.
In a week when spot ETF inflows were at an all-time high, $2.42 billion poured into Bitcoin. So far this year, Bitcoin items have made more than $5 billion, and this month alone, they’ve made $3.6 billion.
The biggest cryptocurrency is seeing more exposure from investors after the legalization of ETFs on January 10th. Bullish momentum is soaring.
The market dominance of Bitcoin continues to grow as its transaction price surpasses $52,000, bringing its AUM to $49 billion.
As a result of institutional investment in the cryptocurrency market after Bitcoin’s bullish surge, numerous altcoins saw profits.
Ethereum (ETH) saw $21 million in new funding, bringing its total year-end funding to $34 million. The asset has recently been associated with favorable feelings due to events around an Ethereum spot ETF in the US.
The number of investment companies applying for a spot ETF has led experts to anticipate a rise in the asset’s inflows. Because of its profitable staking function, trading businesses also see the asset as a potential new best buddy for institutional investors.
Due to the network outage last week, Solana (SOL) saw $1.6 million in withdrawals. Following a successful 2023, which solidified its status as an institutional favorite, Solana has attracted $4.9 million in funding so far this year.
Also Read: Crypto’s Co-Founder Stresses the Critical Role of AI for Developers February 20, 2024
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