Cryptomoney funds register record inflows as gold loses capital

Cryptomoney funds have recorded almost record inflows over the past few weeks as gold investment products lose liquidity.

A new report from market data aggregator CoinShares revealed a recent increase in the flow of cryptomoney inflows amid record outflows of gold.

The report, released on December 7, notes that gold investment products have recorded record outflows of $9.2 billion in the past four weeks, while BTC products recorded inflows of $1.4 billion.

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The combined cryptomoney fund sector registered record inflows of $429 million in the past two weeks, and the Ethereum funds attracted significant investment after the completion of Phase 0 of Eth2 with the launch of the Beacon Chain on December 1.

Despite representing 14% of the capital locked up in crypto investment products, 20% or $87 million of last week’s capital inflows were invested in funds offering exposure to Ethereum.

The report estimates that a total of $14.9 billion is currently under management in crypt investment products, of which Grayscale Investments accounts for over 83%.

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CoinShares estimates that Grayscale received over $336 million in investments over the last week. ETC Issuance was the second largest crypt provider with receipts of $19 million, followed by 21Shares with $13 million.

Recent price action has seen the percentage of the combined assets of the managed sector represented by monthly inflows soar to its second highest level ever, exceeded only by the growing inflows identified in the run-up to Bitcoin’s halving in 2020. Last month’s inflows represent approximately 0.4% of the sector’s combined assets under management.

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While over $4.8 billion has been invested in cryptomoney funds this year, the figure equates to only 10.5% of the $45.7 billion that has been moved into gold investment products this year.