The world’s most precious commodity, Gold saw a record $9.2 billion outflows in the last 4 weeks as Bitcoin funds gained $1.4 billion during the same period. Institutional investors poured approximately $430 million into cryptocurrency funds for the week ended 7 December.
According to a report published by CoinShares, the total crypto assets under management reached an all-time high of $15 billion, which is a significant jump from just $2.57 billion in 2019.
The report outlined the impact of Gold outflows on crypto funds. Gold investment products saw a record $9.2 billion outflows over the last 4 weeks as gold investors apparently diversified their portfolio through investment in crypto-focused funds.
“More and more institutional investors look at Bitcoin as a digital store of value and a new hedge against inflation. This is one reason why some of the actual inflow in Bitcoin and crypto funds comes from gold as the traditional hedge against inflation,” Marc P. Bernegger, Bitcoin-Pioneer and Founder of CryptoFund.News told Finance Magnates.
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Overall, the cryptocurrency funds attracted nearly $430 million in the latest week, which makes it the second-highest weekly inflow on record, just behind the record of $468 million three weeks ago. Grayscale topped the list with nearly $336 million crypto inflows last week to push its total assets under management to more than $12.4 billion.
Bitcoin remained the most preferred cryptocurrency for institutional investors as BTC-focused funds gained more than $334 million inflows in the latest week.
According to the report, Ethereum attracted inflows of nearly $87 million last week and became the standout performer. “Ethereum stood out this week with inflows of US$87m representing 20% of total inflows, far greater than its current share on investment products at 14%. This suggests that investors are favoring Ethereum, likely due to greater clarity from the Ethereum management team on the much-awaited Eth2 upgrades that make the network much more efficient and sustainable,” the report states.
Ethereum officially started the network upgrade earlier this month with the launch of Beacon Chain. Ethereum community staked nearly 1 million ETH to support the upgrade. Wall Street investors have started to notice the performance of Ethereum in recent days as Michael Sonnenshein, Managing Director at Grayscale Investments reported growing interest in Ethereum related investment products. Grayscale is the world’s largest crypto fund.