According to NIKKEI Asia, with the maturity of the cryptocurrency market, Asian family offices are increasingly interested in investing in the crypto space. Zann Kwan, the Investment Director and Partner at Revo Digital Family Office, stated that these family offices not only plan to expand their investments in cryptocurrencies but also previously cautious investors are now actively seeking to incorporate them into their portfolios.
According to Kwan, the investments by these family offices are not limited to traditional cryptocurrencies but also include various cryptocurrency funds, structured products, and direct and indirect private equity investments. This diversified strategy aims to reduce overall portfolio risks while increasing actual returns.
The global nature and borderless investment opportunities of the cryptocurrency market naturally attract the attention of Asian family offices. With Wall Street giants entering the cryptocurrency market in January this year, the cryptocurrency market has shown astonishing growth, according to the Coinshares Weekly Report. The latest data shows that just last week, the investment inflow reached a record-breaking $2.45 billion, bringing the total inflow for this year to $5.2 billion.
In this wave of investment, the US market has played an absolute dominant role. It accounted for 99% of the total inflow, amounting to $2.4 billion. In addition to the strong growth of the US market, other regions have also shown active capital flows. Germany and Switzerland saw inflows of $13 million and $1 million, respectively.
As the leader in the cryptocurrency market, Bitcoin is undoubtedly the most sought-after investment target. It accounts for over 99% of the capital inflow, even though some investors have increased their short positions on Bitcoin, the inflow amount still reached $5.8 million. At the same time, Ethereum also benefited from an inflow of $21 million, demonstrating its continued popularity among investors.
The dynamics of other cryptocurrencies such as Solana, Avalanche, Chainlink, and Polygon vary. Solana recently experienced a market sentiment downturn due to a shutdown event, resulting in an outflow of $1.6 million. In contrast, Avalanche, Chainlink, and Polygon saw inflows of $1 million, $900,000, and $900,000, respectively.
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