Want a sign that crypto mania has taken over? Just look at the amount of money flowing into digital asset funds.
A Monday report from European asset manager CoinShares said that assets under management for crypto investment vehicles are now at a new all-time high of $138 billion.
The new peak mark comes after investors threw $2.2 billion at such funds last week, the report said.
đ Digital asset inflows reached US$2.2bn last week, bringing year-to-date inflows to a record US$33.5bn. #Bitcoin and #Ethereum saw inflows of US$1.48bn and US$646m respectively. Short bitcoin investment products saw inflows of US$49m.
Full report: https://t.co/W1BDGvhJ3B pic.twitter.com/45YkiVTOyV
â CoinShares (@CoinSharesCo) November 18, 2024
CoinShares tracks funds around the world that give investors exposure to digital coins and tokens, including Bitcoin, Ethereum, and Solana exchange-traded funds (ETFs) in Europe and Asia.
âThis recent surge in [investing] activity appears to be driven by a combination of looser monetary policy and the Republican partyâs clean sweep in the recent U.S. elections,â the report said.
It added that most of the money was focused on U.S.-listed spot ETFs, giving sophisticated and retail investors exposure to Bitcoin.
Wall Street regulator, the Securities and Exchange Commission (SEC), approved 11 new spot Bitcoin ETFs in January.
The fundsâmanaged by the likes of BlackRock, Fidelity, and Grayscaleâgive investors from top hedge funds to small-timers using their phones the ability to invest in the cryptocurrency in a streamlined and regulated way.
Following Donald Trumpâs White House win earlier this month, Bitcoinâs price has surged to new highs above $93,000âpartly driven by investors buying into the American ETFs.
CoinSharesâ report added that enthusiasm around Ethereum, the second-biggest digital asset, also surged: $646 million hit products, giving investors exposure to the coin last week.
Since the Republican presidential victory on November 8, money has flowed into the crypto space. The week before, investors put nearly $2 billion into crypto funds. President-elect Trump has promised to help the digital asset industry, making various promises on the campaign trail.
Edited by Andrew Hayward