Investment inflows into digital assets have reached $160 million, driven by fears of traditional finance.

Key Highlights :

The digital asset investment market has been experiencing a surge in activity since the beginning of 2021. Last week saw a record influx of $160 million, the highest since July 2022. Bitcoin products saw the highest inflows of $128 million, with investors viewing it as a “safe haven” for the first time.

This surge in digital asset investments can be attributed to the rising concerns over the stability of traditional finance. With the US Federal Reserve continuing to hike interest rates, money market funds are providing some of the best yields in years. This has led investors to view digital assets as a “safe haven”, providing a more secure option for their investments.

However, not all digital asset investments experienced growth last week. Ether products experienced outflows of $5.2 million due to investor anxiety over the Shanghai upgrade. This upgrade was intended to improve the scalability and security of the Ethereum network, but some investors were wary of the potential disruptions that could occur during the upgrade process.

It is clear that digital asset investments are becoming increasingly popular, with investors viewing them as a more secure option than traditional finance. The record inflows of $160 million last week is a testament to this, and it is likely that we will see further growth in the coming weeks and months.

Continue Reading at Source : cointelegraph