Our team of reporters will only send you the most relevant and accurate news so that you don’t have to search them
According to a recent survey, investors are withdrawing funds from gold investments and directing them to the crypto sector
This week’s CoinShares Digital Asset Fund Flows report indicates that a large volume of investment is flowing from the gold market to cryptomeda. According to ETF provider data, products traded in Bitcoin and Ethereum stocks accumulated $429 million last week alone. The company explained that there has only once been a more significant flow of investment products in cryptomoeda than the one seen last week.
The company currently has a record $15 billion in total assets under management. The report brings Ethereum, which stood out last week, into the foreground. Cryptomoeda has had tickets of $87 million, which represents about 20% of total tickets.
The report closely assessed gold investment flows to Bitcoin, claiming that, „Gold has suffered from outflows of record $9.2 billion in investment products in the last four weeks, while Bitcoin saw inflows totaling $1.4 billion.
The debate between gold and Bitcoin is far from over. According to Goldprice.org archives, gold prices have dropped 10% from $2,070/ounce on August 6 to $1,860/ounce as of today. Bitcoin has been moving in a different direction during this period, rising 56% from $11,700 in August to around $18,300.
The year-to-date figures show that gold has only gained 22% compared to the 150% jump in Bitcoin since the beginning of 2020. Ethereum may not be in this picture, but it did well in the same period. With a 320% increase, from $130 in January to about $550 at the moment, he even outperformed Bitcoin.
Regarding the impressive Ethereum figures, CoinShares explains: „This suggests that investors are favouring Ethereum, probably due to the greater clarity of the Ethereum management team about the long-awaited updates to Eth2 that make the network much more efficient and sustainable.
It is important to note that these figures occurred at a time when the US dollar was performing poorly.
The cryptomeda markets appear to be on a correction path that began earlier this month when total market capitalization reached a high of $591 billion. Markets have retreated about 7% in recent days to $548 billion.