As US Assets Cool, Cryptocurrency Fund Assets Reach All-Time High
On June 9, the Financial Associated Press reported (Editor: Xia Junxiong) that the asset management scale of cryptocurrency funds reached an all-time high in May, thanks to the easing of trade tensions boosting risk appetite. Some investors used digital currencies to hedge against market volatility and diversify their holdings of US assets.
According to data from Morningstar on 294 cryptocurrency funds, these funds attracted a total net inflow of $7.05 billion last month, the highest level since December of last year, bringing the total asset scale to a record $167 billion.
Data from CoinShares shows that Bitcoin funds had a net inflow of $5.5 billion in May, while Ethereum funds saw a net inflow of $890 million.
Nicolas Lin, CEO of fintech company Aether Holdings, stated that Bitcoin is “beginning to re-establish its value,” and is now not only a high-volatility asset but increasingly viewed as a hedging tool by more investors.
Over the past three months, Bitcoin has cumulatively risen over 15%, outperforming its “competitor” gold, which rose 13.3%, and significantly exceeding the MSCI World Index's increase of 3.6%.
Nic Puckri, founder of cryptocurrency analysis firm Coin Bureau, said one of the main drivers for Bitcoin's rise is the market's loss of confidence in US assets.
“The dollar is expected to continue to decline, bond yields are rising, and the stock market outlook is uncertain. But Bitcoin has shown strong resilience,” Puckri said.
Over the past year, as US regulators approved spot Bitcoin and Ethereum ETFs, institutional funds have continuously flowed in to support Bitcoin.
In contrast, Lipper data shows that global equity funds had a net outflow of $5.9 billion in May, while gold funds experienced their first outflow in 15 months, amounting to $678 million. This indicates a broader structural change in global asset allocation.
Lin stated, “I believe the inflow of funds will remain strong, but compared to the initial surge following the ETF approvals, it will stabilize.”
He added, “The initial inflow surge was more like a release valve, while the current phase is more meaningful, marking that crypto assets are gradually becoming a regular allocation in diversified portfolios.”