Crypto Funds Record Spike in Investments as Gold Witnesses Fund Outflows

The latest report published by market data collector CoinShares indicates a surge in capital inflows into crypto funds, while gold sees record outflows.

The December 7 report indicates that gold based investment vehicles have witness outflows to the tune of $9.20 billion in the last four weeks, while Bitcoin based products received $1.40 billion in fresh investments.

The entire crypto fund industry recorded inflows of $429 million in the last two weeks, with Ethereum (ETH) blockchain based funds luring considerable investment after the successful completion of Eth2’s Phase 0 with the roll out of the Beacon Chain on December 1.

In spite of accounting for 14% of the total capital locked in cryptocurrency based investment vehicles, 20% (~$87 million) of last week’s capital inflows went to funds providing exposure to Ether (ETH), the native crypto of Ethereum blockchain. The report assesses that an aggregate $14.90 billion is currently administered via crypto based assets, and Grayscale Investments command 83% share in the market.

CoinShares assesses that Grayscale was the prime recipient with over $336 million in investments in the past week. With investments of $19 million, ETC Issuance took the second place among cryptocurrency providers. It was followed by $13 million investment in 21Shares.

Of late, price action has caused the share of sector’s aggregate assets under administration, mirrored by monthly payment investment inflows, skyrocket to its second-highest peak, eclipsed only by sharp rise in inflows represented by the days ahead of Bitcoin’s 2020 halving events. Last month’s inflows accounted for about 0.4% of the sector’s aggregate AUM.

While over $4.80 billion has entered into crypto funds in 2020, the figure represents only 10.5% of the $45.70 billion that has entered into gold based investment vehicles this year.