Crypto Funds See Largest Amount of Capital in 2 Years
CoinShares has reported a record-breaking $59 billion invested in crypto funds, the highest amount since the start of 2022. Last week, BTC received 98% of the total inflow of $1.09 billion, followed by ETH with $16 million and ADA with $6 million.
Minimal investments were made in funds focused on SOL, AVAX, MATIC, and TRX, according to CoinShares analysts.
Bloomberg noted that in February, the correlation between Bitcoin and American crypto ETFs increased to 0.87 points in just five days, indicating their close relationship in movements.
The most popular ETFs are from BlackRock Inc. and Fidelity Investments, with a notable slowdown in outflows from the Grayscale trust contributing to a recent local high.
Experts, like Vice President of FalconX Holdings Ltd Matt Sheffield, predict that Bitcoin’s price will continue to depend on the influx of capital into the ETF market.
Therefore, if there is a significant increase in investments in the coming weeks, the digital currency is expected to see growth.