Brazilian cryptocurrency funds attracted R$ 109 million in the past week, according to data from CoinShares. This comes as funds with exposure to cryptocurrencies saw a net inflow of $176 million globally between August 5th and 9th, taking advantage of the market dip earlier in the month.
Despite a market correction that saw total assets under management (AuM) of investment products drop to $75 billion, a recovery has since brought it back up to $85 billion. Trading activity in cryptocurrency products also saw a significant increase, reaching $19 billion for the week, compared to an average of $14 billion per week so far this year.
“All regions saw inflows last week, suggesting a unanimous positive sentiment towards the asset class following the recent price correction,” analysts at CoinShares noted. The United States, Switzerland, and Canada were among the top countries with the highest inflows, alongside Brazil.
In terms of specific products, BlackRock’s Bitcoin spot ETF led the way with $408 million in inflows for the week, while Grayscale’s BTC fund saw outflows of $552 million. Ethereum (ETH) was another standout performer, attracting $155 million in inflows, bringing its total for the year to $862 million.
Bitcoin (BTC) initially saw outflows at the start of the week but experienced significant inflows in the following days, totaling $13 million for the week. On the other hand, funds shorting Bitcoin saw their largest outflows since May 2023, totaling $16 million and reducing their AuM to the lowest level since the beginning of the year.
Overall, the positive sentiment towards cryptocurrency funds and assets is evident in the recent influx of investments, with Brazil standing out as a key player in the global market. Investors are capitalizing on market opportunities and diversifying their portfolios with digital assets, showcasing the growing interest and confidence in the cryptocurrency space.
