Capital floods to digital assets in a record speed this year, according to Wall Street Bank JPMorgan (JPM), which marks a sharp contrast with falling flows to private equity and private credit markets.
JPMorgan estimates that net capital inflow to digital assets has hit $ 60 billion to date, a nearly 50% jump since the company’s last update in late May, the bank said in a report Wednesday.
This number includes Crypto Fund Strows, Chicago Mercantile Exchange (CME) futures activity and crypto venture financing and sets 2024 on the way to Eclipse last year’s record.
“The movement of capital flow to digital assets in the last few months has probably been supported by favorable American rules,” wrote analysts led by Nikolao’s Panigirtzoglou.
Remarkably, the passage of the brilliant action in Congress gave long-awaited legislative clarity around stablecoins, establishing global standards for dollar-backed tokens and triggered competitive answers abroad, the authors wrote.
China is pushing on with its digital yuan roll-out, and a yuan-supported stableecoin is now in the works of Hong Kong.
Meanwhile, the Clarity Act, which is currently moving through Congress, aims to define whether digital assets are securities or raw materials, potentially making the United States more attractive to crypto-native companies compared to EU markets in crypto assets (glitter), the report said.
This friendlier regulatory climate fuel for a resurgence in both private and public crypto markets.
Crypto Venture Capital (VC) financing is picked up, while public market interest is growing after Circle’s (CRCL) original public offerings (IPO) and a flurry of new archives with Securities and Exchange Commission (SEC), noted the bank.
Altcoins also experience renewed investor attention, the report says, and Ether (ETH) has in particular benefited from its central role in decentralized funding (DEFI) and smart contracts and is increasingly added to corporate taxes with Bitcoin.
Asset leaders have begun exploring new ALTCOIN-based crypto exchange funds (ETFs), some with action features signaling rising institutional appetite beyond Bitcoin (BTC), added the report.
Read more: Clarity Act could be a game election for institutional adoption of crypto: Benchmark
