Crypto Funds Attract $767M in Six Weeks, Highest Since 2021

Crypto Funds Attract $767M in Six Weeks, Highest Since 2021

The crypto fund scene is buzzing, hitting a $767 million inflow high over six weeks. Something we have not seen since the 2021 market peak, according to CoinShares. 

Last week alone, these funds experienced $261 million in net inflows. Bitcoin funds commanded the majority, with $229 million flowing in last week, boosted by the increased likelihood of a U.S. spot Bitcoin ETF approval and easing macroeconomic pressures. Ethereum funds also reversed earlier outflows, marking their highest inflows since August 2022 at $17.5 million, indicating renewed investor confidence in Ethereum.

Investors seem to be getting back on the crypto train, gearing up for the market’s next moves.

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Kraken Seek Partner for Building Layer 2 Blockchain Network

Kraken, one of the heavy hitters in the U.S. crypto exchange arena, is eyeing the creation of its very own Layer 2 blockchain network. Sources claim Kraken’s potential collaborators include Polygon, Matter Labs, and the Nil Foundation, with discussions remaining private and ongoing. 

Moreover, the exchange has been seeking a "Senior Cryptography Engineer," hinting at active plans for layer-2 solutions, further indicating its strategic direction towards blockchain technology development.

Kraken’s initiative reflects a broader trend of major crypto firms expanding their roles in blockchain development, seeking new revenue streams, or enhancing their platforms. 

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NFT Sales Soar to $129M in November

NFT sales are on the rise, with a sharp increase to 68,342 ETH, worth a whopping $129 million, Nansen reports. 

The leading NFT marketplace Blur outpaced OpenSea with a 30-day trading volume of approximately $305 million. High-profile collections like Bored Ape Yacht Club and Mutant Ape Yacht Club topped the sales charts, while CryptoPunks maintained the greatest market cap despite lower trading volumes.

Moreover, the NFT market witnessed a 12% increase in active traders over the last week. This rise in activity contrasts with OpenSea’s recent staff reductions ahead of the release of OpenSea 2.0 to the public. 

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SEC Finds Staffing Difficult Due to Crypto Ownership Ban

The SEC’s Office of the Inspector General (OIG) has identified challenges within the agency, notably the difficulty in hiring crypto experts. They have this rule that owning crypto disqualifies you from joining the SEC, which is not helping them find the right brains for the job. Moreover, the agency faces stiff competition from the private sector’s substantial salaries. 

The OIG plans to focus on SEC recruitment in the coming year, 2024. Furthermore, there are calls for the OIG to revisit a potential conflict of interest. This involves former SEC official William Hinman and his Ethereum-related speech, which has yet to undergo a thorough investigation.

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Other breaking news

• Binance’s Spot Market Share Declines to 40%
• Ava Labs Trims 12% of Workforce to Focus on Expansion
• SK Telecom Plans Web3 Wallet Launch with Aptos, Atomrigs Lab
• ORDI Token Surges 50% After Binance Listing
• Vertu Unveils $5K Web3 Luxury Phone Model

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Wrapping up

And there you have it! Today’s rundown touched on the cash flowing into crypto funds — investors seem to be diving back in. NFT sales are not lagging either, boasting $129M in November. Kraken is building its L2 network, while the SEC is seeking crypto experts who, ironically, don’t own any crypto. More to come, so stay with us!