Institutional crypto funds see record-breaking capital inflows from Europe, latest research shows

What

Digital asset investment products saw inflows of $193m last week, the largest since December of last year, with the majority coming from Europe

Why

Analysts have said European firms may have gained confidence after a bill banning the proof-of-work (PoW) consensus algorithm used in Bitcoin mining did not pass

What next

The figures represent a geographic shift from the data the week prior, which saw $49.4 million withdrawn from BTC and ETH from mostly North American firms with concerns regarding increasing crypto regulations

The story

In a report by digital asset manager CoinShares, it was revealed that digital asset investment products saw inflows totalling US$193m last week, the largest since mid-December 2021.

The majority of the weekly inflow (76%) came from Europe at $147m, while the rest came from the US. Unsurprisingly, more than half of the total figure went to Bitcoin alone, with Solana coming in a close second, seeing $87 million inflows for the week – a figure that CoinShares says is the “largest single week of inflows on record.”

The last time total global weekly investment levels were near the current figure was in the week ending on 3 December, which saw $184 million worth of inflows.

Europe’s significant contribution follows news that a bill from the EU banning the proof-of-work (PoW) consensus algorithm used in Bitcoin and several other major cryptocurrencies to verify transactions did not pass. 

To learn more about Bitcoin and Ethereum, visit our learning resource here.