Investors pour $160 million into digital assets

The European cryptocurrency investment business CoinShares released its latest “Digital Asset Fund Flows Report” on March 27. The report reveals that digital assets continue to draw investor interest as worries about the stability of conventional finance continue to increase.

According to the data, digital asset investment products saw $160 million in inflows last week, the most since July 2022 and a notable turnaround following six weeks of outflows totaling $408 million.

The report also noted that investors are increasingly concerned about the stability of the traditional financial sector, despite the fact that capital inflows into the crypto market came relatively late.

The United States, Germany, and Canada, among others, contributed investments totaling $69 million, $58 million, and $26 million, respectively.

First-time consumers saw Bitcoin as a “safe haven,” according to the survey, resulting in Bitcoin-related items receiving $128 million.

Nevertheless, not all investors shared this outlook, as $31 million flowed into short bitcoin securities. Yet, short Bitcoin remains the investment product with the greatest inflows year-to-date, despite not having the best price performance.

Ether products, on the other hand, saw outflows of $5.2 million last week, the third consecutive week of outflows.

The research relates this tendency to market nervousness around the impending Shanghai upgrade on April 12. Diverse altcoins also attracted investment, with Solana’s SOL, Polygon’s MATIC, and XRP attracting $4.8 million, $1.9 million, and $1.2 million, respectively.

Many investors are beginning to regard the digital asset industry as a “safe haven” as a result of escalating fears about the safety of conventional finance, according to recent research.

In addition, many investors have rebalanced their portfolios in recent weeks due to the banking crisis, resulting in the transfer of over $286 billion into United States money market funds so far in March, according to data obtained by the Financial Times from Emerging Portfolio Fund Research.

Money is flowing into money market funds due to concerns about the stability of the financial system, as banks in the United States and Europe are experiencing liquidity constraints as a result of tightening monetary policies.

Money market funds are a popular investment choice during uncertain times due to their high liquidity and low risk. Due to the ongoing interest rate rises by the U.S. Federal Reserve to combat inflation, these funds are now offering some of the highest returns in recent memory.