Bitcoin (BTC) funds received money for the second week in a row, and they performed better than other digital asset funds as investors tried to predict how the crypto markets would perform in the future.
The latest data from digital asset fund provider CoinShares shows that bitcoin-focused investment funds received $125.9 million in net inflows in the week ending June 3. This brings the total net inflows since the beginning of the year to $506 million. Inflows into crypto funds totaled almost $100 million, which means that new money put into bitcoin funds made up for losses in crypto funds that didn’t invest in bitcoin (altcoins).
James Butterfill, who is in charge of research at CoinShares, says that the outperformance shows that “investors are flocking to bitcoin because it is relatively safe.”
As the financial markets react to persistently rising inflation, interest rate hikes by central banks around the world, and growing fears of a recession, some investors have cut back on their exposure to risky assets, such as cryptocurrencies. Investors in digital assets think that Bitcoin is less risky than most other tokens because it has been around the longest and has the most market value. This year, Bitcoin’s “dominance,” or share of the market value of the whole sector, has grown.
Last week, you could buy or sell BTC for anywhere between $29,000 and $32,000. At the time of this writing, you could buy or sell BTC for $31,259.
The trend of Ethereum funds going down continued, with nine weeks of outflows. Investors took out $32 million from funds that manage Ether (ETH), the second-largest cryptocurrency. This brings the total amount of money taken out of funds this year to $357 million. Withdrawals started up again in December 2021. According to the report, they only make up 7% of the total amount of assets under management, which is a very small amount.
The total amount that went into short-bitcoin funds, which aim to make money if the price of bitcoin goes down, was $1.3 million.
Multiasset funds, which manage multiple cryptocurrencies, got $4.3 million in new money, bringing the total amount of new money since the beginning of the year to $201 million. This shows how important diversification is for investors.
Based on the breakdown by region, most of last week’s flows came from the Americas, which received $88 million. This week, only $11 million came into European funds, continuing a trend that “European investors have been much more bearish so far this year,” according to a study.
