The data shows that capital flows into crypto funds rose to $127M for the week ended March 6th, marking the largest weekly inflows since last December. The latest increase is significantly higher than the $36M of inflows reported by CoinShares for the week ending February 27th.
Per the latest report, the bulk of the positive sentiment was centered in North America, with inflows into digital asset investment products from the region hitting $151M. Meanwhile, European investment products registered outflows totaling $24M.
The data about capital flows into crypto funds offers cautious optimism to market participants as it highlights growing investor resilience despite the current geopolitical tensions in Europe.
As was the case in previous weeks, bitcoin funds saw the largest inflows in the market ($95M) as investors searched for safe-haven assets during the current geopolitical crisis. The spike in BTC capital inflows represents the seventh consecutive week of investors broadening their exposure to the popular digital coin.
The latest figure brings the cumulative investment inflows into BTC to $166M year-to-date, indicating that institutions remain bullish on the world’s first cryptocurrency.
ETH funds are also benefiting from the current positive sentiment in the crypto market. Ether investment products have seen inflows totaling $25M over the past week, their largest gains in 13 weeks. Meanwhile, CoinShares shows that multi-asset products continue seeing increased inflows, with investments rising by $8.6M last week.
The rising cumulative inflows into crypto funds indicate that investors remain supportive of digital assets despite geopolitical uncertainty and looming regulatory measures.
The ongoing conflict in Ukraine has brought a lot of fear and uncertainty, impacting demand for high-risk investments such as cryptocurrencies. Over the weekend, the digital assets market witnessed tanking prices, with BTC rejecting near the $40k level. The retracement sparked speculation that the coin could face capitulation into the $20k zone.
However, analyst Michaël van de Poppe is giving a more optimistic take on the BTC price action, suggesting that the current weakness could give way to a bounce near the $36k. He tweeted
Well, #Bitcoin is correcting still after a rejection at $39.2K.
Assuming we're going to take the low for some liquidity before we have a chance of some upwards momentum.
— Michaël van de Poppe (@CryptoMichNL) March 7, 2022
Despite mounting market volatility and choppy price action, capital continues to flow into the digital assets sphere. This show of resilience from crypto proponents is a clear indicator the sector is maturing and inching closer to mainstream adoption.
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