Digital Asset Investment Fund Records Impressive Inflow, Reaching a Record Management Level of $244 Billion.
A recent report from CoinShares shows that last week, the capital flow into cryptocurrency investment products reached $3.75 billion, with Ethereum leading and capturing the majority of the inflow. The United States continues to be the largest capital-attracting market, accounting for 99% of the total inflow.
- Capital flow into digital asset funds last week reached $3.75 billion.
- Ethereum received $2.87 billion, accounting for 77% of the total capital flow and far surpassing Bitcoin.
- The United States dominates 99% of digital asset investment capital.
Where Does the Investment Capital for Digital Assets Come From and What is Its Scale?
CoinShares' latest weekly report indicates that the net capital flow into digital asset investment products reached $3.75 billion, raising the total managed assets to a record $244 billion. This is a positive sign reflecting investors' increasing interest in the cryptocurrency market in general.
Notably, the capital inflow trend is primarily concentrated in the US market, accounting for 99% of the total capital. This demonstrates the high priority of US investors towards digital asset products, driving the industry's robust development.
How Did Ethereum and Bitcoin Attract Investment Capital in This Period?
Ethereum led by attracting $2.87 billion in new capital, accounting for 77% of the total weekly investment, raising the cumulative capital flow since the beginning of the year to $11 billion. This figure completely dominates Bitcoin, despite the world's largest cryptocurrency receiving $552 million in capital during the same period.
Ethereum's superiority shows that investors have great confidence in the platform's development potential and applications, especially in the context of rapidly expanding DeFi and Non-Fungible Token technologies in its ecosystem.
Ethereum continues to prove its leading position in digital asset investment capital, demonstrating long-term potential and superior attractiveness compared to other competitors.
CoinShares, Weekly Report, August 2024
Did Other Cryptocurrencies Benefit from the Capital Flow?
Beyond Ethereum and Bitcoin, some currencies like Solana and XRP also recorded positive capital flows of $177 million and $126 million respectively last week. However, some currencies like Litecoin and TON experienced net capital outflows of $400,000 and $1 million respectively.
This reflects a clear differentiation in investment priorities, based on factors such as technology, development community, and future orientation of each cryptocurrency project.
Why Does the US Dominate the Investment Capital Proportion in the Digital Asset Market?
The US is a global financial center with a diverse and deep investment ecosystem, creating a favorable environment to attract capital for new investment products like digital assets. Moreover, the legal framework in the US is developing, gradually becoming clearer and helping investors feel more confident when investing.
This factor contributes to driving more money into domestic digital asset investment funds, helping the US maintain its leading position in capital flow compared to other regions worldwide.
Frequently Asked Questions
How Large is the Current Investment Capital in Digital Assets?
Last week, the capital flow into cryptocurrency investment products reached $3.75 billion, raising the total managed assets to a record $244 billion, according to CoinShares' report.
Are Ethereum and Bitcoin the Top Choices for Investors?
Ethereum attracted $2.87 billion, accounting for 77% of the total investment capital, much higher than Bitcoin's $552 million in the past week.
Why Does the US Lead in Digital Asset Investment Capital?
The US has a developed financial ecosystem and clear legal framework that helps attract 99% of the total investment capital in this field.
What are the Capital Flow Figures for Other Currencies Like Solana and XRP?
Solana and XRP recorded $177 million and $126 million in new capital respectively, showing investors' diverse interests.
Are There Any Cryptocurrencies Experiencing Capital Withdrawal?
Litecoin and TON experienced net withdrawals of $400,000 and $1 million respectively, reflecting differentiation in investment choices.
