According to the latest report from European asset management company CoinShares, the managed assets of global crypto investment tools have reached a historic high of $138 billion.
Behind this new high is the investment of $2.2 billion by investors into these funds last week.
Background of fund inflows
A report by CoinShares pointed out that the surge in this investment activity is mainly driven by two factors: first, the easing of monetary policy, and second, the comprehensive victory of the Republican Party in the recent U.S. elections.
Investors have shown strong interest in spot ETFs (exchange-traded funds) listed in the United States, which provide a convenient Bitcoin investment channel for both institutional and retail investors.
Approval of Bitcoin ETFs and market reaction
In January of this year, the U.S. Securities and Exchange Commission (SEC) approved 11 new spot Bitcoin ETFs, managed by well-known asset management companies such as BlackRock, Fidelity, and Grayscale. The launch of these ETFs has allowed everyone from top hedge funds to ordinary investors to invest in cryptocurrencies in a more simplified and compliant manner.
With Trump's victory in the presidential election earlier this month, the price of Bitcoin soared, breaking the historical high of $93,000, partly due to investors rushing to buy U.S. ETFs.
Options trading for BlackRock's Bitcoin ETF
In addition, BlackRock's spot Bitcoin ETF is about to launch options trading, expected to start on Tuesday. A spokesperson for Nasdaq confirmed this news, marking the arrival of a new leveraged Bitcoin investment method on Wall Street. The Options Clearing Corporation (OCC) updated the filing for the new options listing on its website, indicating that the iShares Bitcoin Trust ETF (IBIT), valued at $43 billion, will have options listed on Nasdaq.
Investment enthusiasm for Ethereum
The report by CoinShares also pointed out that Ethereum, the second-largest digital asset, has also seen a surge in investment, with $646 million flowing into related products last week, showing strong interest from investors in this cryptocurrency.
Since the Republican Party's victory in the presidential election on November 8, funds have continued to flow into the cryptocurrency sector.
Just a week ago, investors poured nearly $2 billion into crypto funds.