Last week, crypto funds recorded real boom.
Crypto funds – volume + $ 36 million
According to CoinShares, investment products have recorded digital assets last week inflow over $ 127 million. This is an increase of $ 36 million over the previous week and the largest volume of weekly inflows since December 12, 2021.
This is very reassuring for the crypto markets and brings some optimism, as investors seem to be expanding their exposure to digital assets despite the current geopolitical uncertainty. Even the expected monetary tightening by central banks does not seem to be able to stop this phenomenon.
In addition, since the outbreak of the war in Ukraine, the correlation rate between BTC price trend and the Nasdaq 100 has halved, indicating that, paradoxically, on crypto markets are currently less afraid than traditional markets.
Suffice it to realize that compared to the end of January, the current level of the Nasdaq 100 index is much lower, while BTC price is much higher.
According to Pantera Capital CEO Dan Morehead the correlation between stocks and cryptocurrencies is only temporary with pointing out that since 2010 correlation between BTC and the S&P 500 index usually increases two months before decoupling. Crypto markets have shown a higher correlation with public stocks since the outbreak of the Covid-19 pandemic.
Investors choose BTC
Last week, the largest inflows went to BTC crypto funds, as is often the case, at almost $ 95 million out of $ 127 million. On the other hand, ETH funds recorded an inflow of only $ 25 million, yet it was the largest volume in 13 weeks.
Multi-asset mutual funds saw an inflow of $ 8.6 million last week. Altcoin funds were mixed. Funds targeting Solana lost $ 1.7 million and funds targeting Polkadot about $ 900,000. Cardano funds recorded an inflow of approximately $ 900,000. Funds targeting Litecoin and XRP also saw inflows, but almost negligible.
Thus, institutional investors, the most common clients of regulated crypto funds, appear to benefit from these relatively low price points for BTC accumulation, rather than increasing exposure to the BTC price, as these funds do not allow clients to physically accumulate tokens.
However, it is not clear whether this dynamic is due only to the fact that BTC prices have been particularly low for several months compared to the end of 2021, or whether this has something to do with the ongoing war events.