Crypto Defies Geopolitical Tensions: $13B Inflows And Growing Confidence
- Crypto assets remain resilient with $1.9B in inflows, marking the ninth consecutive week of positive growth.
- Bitcoin saw a strong rebound with $1.3B inflows, signaling renewed investor confidence.
- Ethereum’s $583M inflow, its largest since February, reflects growing interest in the cryptocurrency.
Crypto assets have shown remarkable strength, amidst geopolitical tensions which have hit risk assets globally. CoinShares has reported that investment products in digital assets experienced inflows of $1.9 billion last week, the ninth weekly positive inflow in a row. This takes the total inflows on this streak to have reached a new high of $12.9 billion, with inflows year to date (YTD) at a staggering record of $13.2 billion.
Source: CoinShares
Investor confidence in most regions was mostly positive, with the United States leading the way. There was an inflow of $1.9 billion in the US and robust optimism in digital assets. The inflows also reached $20.7 million, $39.2 million, and $12.1 million in Switzerland, Germany, and Canada, respectively. Nevertheless, in Hong Kong and Brazil, there were outflows worth $56.8 million and $8.5 million, respectively, indicating a more conservative trend in these places.
Investor Confidence Rebuilds
After two weeks of minimal outflows, Bitcoin experienced $1.3 billion of inflows. This is a positive movement, indicating investor confidence in cryptocurrency has recovered. There were also small flows of short-bitcoin products that recorded inflows of $3.7 million, but assets under management (AuM) are a small amount, amounting to $96 million.
Ethereum also held its pace, showing $583 million in inflows, which is the largest wave since February. This comprised its highest one-day inflow of the period. As of now, Ethereum has an inflow of $2 billion, which corresponds to 14% of its assets under management (AuM), indicating investor interest in the second-largest cryptocurrency.
XRP has turned around following three spells of outflows with an inflow of $11.8 million. This is a sign of improvement in investor interest, which is a positive indicator of sentiment. In the meantime, Sui experienced further influxes of $3.5 million, and this trend is also characteristic of altcoins.
Crypto Assets Show Resilience
In the face of financial pressures, crypto assets become a stable investment category. The markets might also gradually see digital currencies as an alternative to conventional safe-haven assets, including gold. The continued inflows are an indicator of increasing conviction in the long-term prospects of cryptocurrencies within the international financial system.
The geopolitical tensions do not affect the power of digital assets. The cryptocurrency market is set to further expand in the future with its steady entry and growing confidence among investors. With a growing number of investors using crypto, its impact on the future of the finance sector is increasingly becoming important.
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