On March 27, European cryptocurrency investment firm CoinShares released its "Digital Asset Fund Flow Report," which revealed that digital assets continue to attract investor attention as concerns grow over the stability of traditional finance (TradFi).
According to the latest report, digital asset investment products saw inflows of $160 million last week, the largest since July 2022, marking a significant turnaround after six weeks of outflows totaling $408 million. . The report also noted that "while inflows came relatively late compared to the broader crypto market," investors are increasingly concerned about the stability of the traditional financial sector.
Investments came from various countries, including the United States, Germany, and Canada, with inflows of $69 million, $58 million, and $26 million, respectively.
According to the report, Bitcoin (BTC) received tickets of $128 million due to patrons seeing it as a "safe haven" for the first time. However, not all investors shared this view, as shorting Bitcoin products also saw inflows of $31 million. However, shorting Bitcoin remains the investment product with the most inflows so far this year, although it is not the best performing product from a price perspective.
On the other hand, ether (ETH) experienced departures of $5.2 million last week, marking the third consecutive week of departures. The report attributes this trend to investor anxiety over the Shanghai update, which is expected to occur on April 12. Several altcoins also saw entries, with Solana (SUN), polygon (MATIC), and XRP products attracting $4.8 million, $1.9 million, and $1.2 million, respectively.
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Overall, the report cited growing concerns about the stability of traditional finance as the reason for the growing interest in digital assets, as many investors begin to view the sector as a "safe haven."
In addition, over the past few weeks, many investors have rotated their portfolio investments due to the banking crisis, resulting in more than $286 billion in US money market funds so far in Marchaccording to data from Emerging Portfolio Fund Research (EPFR) obtained by the Financial Times.
The entry of money into money market funds It can be attributed to concerns about the stability of the financial system, as banks in the US and Europe are experiencing liquidity squeezes due to tighter monetary policies. In uncertain times, money market funds are a preferred investment option for many, as they offer high liquidity and low risk. These funds are currently providing some of the best returns in years due to continued interest rate hikes by the US Federal Reserve aimed at curbing inflation.
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