Attracting $2 billion in investment every week? The cryptocurrency field is favored by the capital market

Global investors are aggressively investing in cryptocurrency funds and companies, seeking to enter an industry that many believe can withstand the fallout of the Russian-Ukrainian conflict, according to the Reuters website.

Venture capital buyers invested around $4 billion in the cryptocurrency space in the last three weeks of February, consulting firm Fundstrat said in its latest report to clients. Venture capital firms poured another $400 million into startups in the space last week, data show.

The report also said that venture capital was consistent with the overall weekly capital flow. Fundstrat data shows that since the beginning of the year, the sector has attracted an average of between $800 million and $2 billion in weekly investment.

U.S. investors pulled a net $7.8 billion from bond funds in the week ended March 9, according to Lipper, a fund analysis firm owned by Refinitiv.

Real estate funds posted net outflows of $707 million over the same period, compared with $1.15 billion in the prior week.

“While crypto-native companies are raising funds at very high valuations, many funding rounds are still oversubscribed,” said George Melka, CEO of cryptocurrency brokerage SFOX. is probably the highest valuation I've ever seen."

For example, Bain Capital Ventures, part of private equity firm Bain Capital, announced early last week that it would launch a $560 million fund focused on cryptocurrency-related investments.

During the Russia-Ukraine conflict, crypto-assets outperformed traditional risk assets such as stocks. Bitcoin gained 12.2% last month, while ether gained 8.8%. Since Feb. 24, the two digital currencies are up 14.5% and 13.5%, respectively, while the S&P 500 is up just 3.2%.