Investment Inflow Into Crypto Assets Highest in 3 Months

Investments into cryptocurrencies has reached a 3-month high with an inflow of $193 million. Such values were last seen in December 2021. This was shown by data from Coinshares, the digital assets management firm. Bitcoin led the investment inflow with $98 million invested in the asset. The digital currency has received $162 million year to date.

Coinshare stated that with the recent recovery, the coin market’s asset under management (AUM) had a boost of $57 billion.

Inflow into digital assets

Regional Impact

It added that the European market is responsible for a large chunk of the investment inflow. The report stated that $147 million came from the region, constituting 76% of the investments. The Americas which has had significant outflow in recent months had $45 million inflow.

“Following last week’s price recovery, total assets under management (AUM) now sit at $57 billion. Regionally, the majority (76%) of inflows came from Europe at $147 million, while the Americas lagged at $45 million, with some providers continuing to see minor outflows.”

Another asset that received significant investment within this period is Solana. The asset had high publicity in 2021 and has continued to ride on the goodwill of investors. The report shows that SOL receives $87 million in investment inflow. This represents an AUM of 36%. This brought the total AUM of the cryptocurrency to $241 million and the fifth coin in terms of investment within the period under analysis. SOL is only the second altcoin after Ethereum in terms of investor interest and capital inflow.

The Coinshare report further made it clear that there was a significant inflow of investment in a number of altcoins in the past week. These include Cardano, Polkadot and ATOM, which had investment inflows of $1.8 million, $1.2 million and $0.8 million respectively.

Institutional Interest in Crypto Assets

Looking at the data, there are indications that institutional investments in the coin market is increasing. Consequently, we are seeing inflow levels not seen in the past 3 months. This also correlates with the recent higher prices.

Bitcoin is currently trading above $47,633, having made gains of +12% in the past 7 days. Also, Ethereum is trading above $3,432, making a gain of +13% in the past 7 days. Whenever institutional investors start moving funds into the market, the coin market reacts to the increasing assets demand.

Author: Jinka Kamma

Jinka Kamma is passionate about the prospects of blockchain and the freedom cryptocurrencies afford people across borders. He holds small amounts of bitcoin and tether.