1. The Asset Management scale of cryptocurrency funds reached a historical high in May, benefiting from the easing of trade tensions which boosted risk appetite. Some investors used digital currencies to hedge against market volatility and diversify their holdings in US assets; 2. Nic Puckri, the founder of the cryptocurrency analysis firm Coin Bureau, stated that one of the main drivers of Bitcoin's rise is the market's loss of confidence in US assets.
According to a report from Financial Associated Press on June 9 (Editor: Xia Junxiong), the Asset Management scale of cryptocurrency funds reached a historical high in May, benefiting from the easing of trade tensions which boosted risk appetite. Some investors used digital currencies to hedge against market volatility and diversify their holdings in US assets.
According to Statistics from Morningstar on 294 cryptocurrency funds, these funds attracted a total net inflow of 7.05 billion USD last month, reaching the highest level since December of last year, with a total asset size of a record 167 billion USD.
Data from CoinShares shows that in May, Bitcoin funds had a net inflow of 5.5 billion USD, while Ethereum funds had a net inflow of 0.89 billion USD.
CNI Xiangmi Lake Fintech Index company $Aether Holdings (ATHR.US)$ The CEO of Aether Holdings, Nicolas Lin, stated that Bitcoin "is beginning to show its value again," and is no longer just a highly volatile asset, as more and more investors are viewing it as a hedging tool.
Over the past three months, Bitcoin has surged more than 15%, outperforming its "competitor" Gold's increase of 13.3% and far exceeding the MSCI World Index's increase of 3.6%.
Nic Puckri, the founder of the cryptocurrency analysis firm Coin Bureau, stated that one of the main drivers of Bitcoin's rise is the market's loss of confidence in US assets.
"The dollar is expected to continue to fall, bond yields are rising, and the stock market outlook is uncertain. However, Bitcoin is showing strong resilience," Puckri said.
In the past year, as U.S. regulators approved spot Bitcoin and Ethereum ETFs, Institutional funds have continuously flowed in, providing support for Bitcoin.
In contrast, Lipper data shows that global stock funds had a net outflow of 5.9 billion dollars in May, while Gold funds experienced their first outflow in 15 months, amounting to 0.678 billion dollars. This indicates that global asset allocation is undergoing a broader structural change.
Lin said: "I believe that the inflow of funds will remain strong, but it will stabilize compared to the frenzy right after the ETFs were approved."
He said: "The initial inflow frenzy was more like a release valve, while the current phase is more meaningful, marking that crypto assets are gradually becoming a regular component of diversified portfolios."
Editor/rice
