According to Wall Street Bank JP Morgan (JPM), Capital is flooding at a record speed this year, marking a sharp contrast with a decline in flow in private equity and private credit markets.
The bank said in a report on Wednesday that JP Morgan estimates that 60 billion dollars of net capital in digital assets had been a year-over, a jump of about 50% since the final update of the firm in late May.
That figure includes Crypto Fund Flow, Chicago Mercantile Exchange (CME) Futures Activity, and Crypto Venture Funding, and 2024 is placed on track to receive last year’s record.
Analysts headed by Nicolos Panigartzoglu wrote, “The possibility of growth of capital flow in digital assets in the last few months is supported by favorable American rules.”
In particular, the passage of the Genius Act in the Congress provided long-awaited regulatory clarity around Stabecoin, establishing global standards for dollars-supported tokens and triggered competitive responses abroad, the authors wrote.
China is proceeding with its digital yuan rollout, and a yuan-supported stabechoin is now working in Hong Kong.
The report stated that in the meantime, the clarity act, currently running through the Congress, is to define whether digital assets are securities or objects, possibly Crypto-assets (MICA) makes America more attractive to Crypto-Mool companies than the European Union markets in the framework.
This friendly regulatory climate is promoting revival in both private and public crypto markets.
Crypto Venture Capital (VC) has raised the funding, while the interest of the public market is growing after the Circle’s (CRCL) initial public offering (IPO) and a striking of new filing with the Securities and Exchange Commission (SEC) is a striking, the bank said.
AltCoins are also renewed investor attention, the report states, and ether, especially, has benefited from its central role in decentralized finance (Defi) and smart contracts, and is being faster to corporate treasures with bitcoins.
Asset managers have begun the discovery of the new Altcoin-based Crypto Exchange-Tradeded Fund (ETF), with some stacking features, indicating growing institutional hunger beyond bitcoin (BTC), indicating in the report.
Read more: Clarity Act for adopting institutional Crypto can be a game changer: benchmark
