Crypto funds recorded record assets in May as easing trade tensions boosted risk appetite and investors turned to digital assets for hedging and portfolio diversification, Reuters reported on Wednesday.
Morningstar data reveals $7.05 billion in net inflows into 294 funds, bringing total assets under management to $167 billion, a new high.
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Bitcoin, with a rise of more than 15% in three months, outperformed gold (13.3%) and the MSCI World Index (3.6%).
Analysts attribute its strength to a loss of confidence in traditional US investments, with concerns about the dollar, bonds, and equities driving demand.
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Meanwhile, global equity funds saw outflows of $5.9 billion, and gold funds recorded their first withdrawal in 15 months.