Capital floods digital assets at a record rate this year, according to the bank of Wall Street JPMorgan (JPM), marking a net contrast with the drop in flows in the private investment and private credit markets.
JPMorgan estimates that net capital entries in digital assets have reached $ 60 billion for the start of the year, a leap of almost 50% since the last update of the company at the end of May, the bank announced on Wednesday.
This figure includes Crypto fund flows, the term activity on future Chicago Mercantile Exchange (CME) and the financing of the Crypto company, and puts 2024 on the right track to overshadow last year.
“The thrust of capital entries in digital assets in the last two months has probably been supported by favorable American regulations,” the analysts led by Nikolaos Panigirtzoglou wrote.
In particular, the adoption of the Congress Engineering Act provided a long -awaited regulatory clarity around Stalins, establishing global standards for supported tokens of a dollar and triggering competitive responses abroad, the authors wrote.
China gets ahead with its digital deployment of the Yuan, and a Stablecoin on Yuan’s back is now in preparation in Hong Kong.
Meanwhile, the Clarity Act, which is currently going through Congress, aims to define if digital assets are securities or basic products, which makes the United States more attractive for crypto-swimming companies compared to EU markets in crypto-active assets (Mica), according to the report.
This more user -friendly regulatory climate feeds resurgence on private and public cryptography markets.
The financing of Crypto Venture Capital (VC) has acquired, while the interest of the public market increases after the initial public offer of Circle (CRCL) (IPO) and a wave of new documents with the Securities and Exchange Commission (SEC), noted the bank.
Altcoins are also experiencing renewed investors, according to the report, and Ether (ETH), in particular, has benefited from its central role in decentralized finance (DEFI) and smart contracts, and is added more and more to business treasury bills alongside Bitcoin.
The asset managers have started to explore new funds (ETF) based on crypto exchanges (ETF) based on Altcoin, some with stimulation characteristics, signaling an increase in institutional appetite beyond Bitcoin (BTC), added the report.
Read more: Clarity Act could change the situation for the institutional adoption of the crypto: benchmark
