According to analysts from CoinShares, last week the volume of investments in cryptocurrency derivatives reached $1.44 billion. This is a record figure since the beginning of the year - the total volume of investments reached $17.8 billion, which significantly exceeds the result for the entire 2021 ($10.6 billion).
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Brief excerpt: Derivatives are financial instruments whose value depends on the value of other assets, such as stocks, bonds, commodities or even interest rates.
Simply put, a derivative is an agreement to buy or sell an asset at a future date at a pre-agreed price. This allows investors to hedge risks or speculate on changes in the prices of the underlying asset.
And so we continue, analysts attribute the increase in investments to a general decline in prices in the cryptocurrency market, which prompted investors to invest more actively in cryptocurrency derivatives.
The United States remains the traditional leader in terms of investment volume - this week the influx of funds amounted to $1.3 billion. Positive sentiment is also observed in other countries: for example, Switzerland recorded a record inflow of $58 million this year, as well as Hong Kong and Canada - $55 million and $24 million, respectively.
Bitcoin-based investment products posted the fifth-largest weekly inflows on record at $1.35 billion. At the same time, there was a record outflow of funds from Bitcoin positions in the amount of $8.6 million since April.
the increase in investment was facilitated by the sale of confiscated $BTC by the German government, as well as a lower-than-expected consumer price index in the United States.
There has also been an influx of funds into a wide range of altcoin-based products. The leader was #Ethereum Ethereum with an influx of $72 million. That's the biggest gain since March and is likely due to pending approval of spot exchange-traded funds (#ETFs) based on $ETH in the US, analysts said.
Other large-cap altcoins include Solana, Avalanche and Chainlink: over the week, the inflow of funds into derivatives based on them amounted to $4.4, 2 and 1.3 million, respectively.
Earlier it became known that during the crypto market decline at the beginning of the month, large Bitcoin holders added 71,000 coins worth $4.5 billion at the current rate to their wallets. In the first ten days of July, the number of wallets with a balance of at least 10 BTC increased by 261 pieces.
