Cryptocurrency

Crypto funds are seeing near-record inflows as capital floods from gold

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A new report from market data aggregator CoinShares has revealed the recent surge in crypto inflows in record gold outflows.

The report, released Dec. 7, found that gold investment products saw record outflows of $ 9.2 billion in the past four weeks, while BTC products saw inflows of $ 1.4 billion.

The combined crypto fund sector has seen record inflows of $ 429 million in the past two weeks, with Ethereum funds attracting significant investment after completing Phase 0 of Eth2 with the launch of the Beacon Chain on Dec. 1.

Despite 14% of the capital tied up in crypto investment products, 20%, or $ 87 million, of last week's capital flows were invested in funds that offer exposure to Ethereum.

The report estimates that it currently manages a total of $ 14.9 billion in crypto investment products, of which Grayscale Investments accounts for more than 83%.

CoinShares estimates that Grayscale has raised more than $ 336 million in investments over the past week. ETC Issuance ranked second among crypto providers with an inflow of $ 19 million, followed by 21Shares with $ 13 million.

More recently, the percentage of the sector's combined AUM represented by monthly inflows has increased to the second-highest level ever, only surpassed by the rising inflows noted in the run-up to Bitcoin 2020 halving. Last month's inflows account for around 0.4% of the sector's combined AUM.

While more than $ 4.8 billion went into crypto funds this year, that's only 10.5% of the $ 45.7 billion invested in gold investment products this year.

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Melinda Martin