Shutdown Fears Stimulate Investments in Crypto Funds: Report

Reading Time: < 1 minute

CoinShares analysts report that from September 23 to September 29, there was an increase in investments in cryptocurrency products due to concern about a potential US government shutdown.

During this time period, $21 million was invested, after six weeks of consecutive negative growth. Experts noted that most of the investments occurred towards the end of the week, before the end of the financial year on September 30.

This uncertainty surrounding the distribution of budget funds to government departments may have prompted investors to turn to cryptocurrency as a safe haven.

The cryptocurrency market also experienced an upswing during this time, which may have contributed to the increased investment in Bitcoin funds.

In fact, there was a net inflow of $20.4 million in Bitcoin funds, after a previous outflow of $6 million.

Meanwhile, there was a slight decrease in investments in short positions on Bitcoin, with $1.5 million being withdrawn compared to $2.8 million the previous week.

Altcoin-based products had mixed results, with $1.5 million being withdrawn from Ethereum funds compared to $2.2 million the previous week.

However, Solana-based products saw an inflow of $5.1 million, with the overall TVL for Solana reaching an annual high of $339 million recently.