A new report from CoinShares on Digital Asset Fund Flows suggests that lately, investors have been exiting gold markets and to enter the crypto space. This does not come as a surprise following the rally of Bitcoin from around $12,000 to over $19,000 in the last two months. It is possible that the inflow of “big money” may have contributed to the positive price actions of digital assets.
CoinShares is an ETF provider. Over the last week, the company’s Bitcoin and Ethereum stock traded products saw an investment of $429 million, its second-highest crypto investment product inflow. The report compared the movement from gold to Bitcoin stating:
Gold has suffered [from] outflows from investment products of a record US$9.2bn over the last four weeks while Bitcoin saw inflows totaling US$1.4bn.
Between December and August, the price of gold has dropped 10% from $2070/oz to $1860/oz. Meanwhile, Bitcoin has risen 56% from $11,700 to $18,300, within the same period.
Expanding the overview to cover the entire year and it becomes clearer that while gold is up 22% since the beginning of the year, Bitcoin has risen by 150%, and its close competitor Ethereum has surged by 320%.
The bottom line is that major institutional funds are moving into digital assets. For example, PayPal and Square are reportedly buying every single mined Bitcoin. Meanwhile, a firm like MicroStrategy that already bought Bitcoin of nearly $500 million is looking to raise $400 million to increase its stash.