Bank of America has reported record inflows into both US stocks and cryptocurrencies. Led by chief investment strategist Michael Hartnett, the analysis reported a staggering $56.1 billion increase in U.S. stock funds. This is the largest influx in a single week ever recorded.
Bank of America has reported record inflows into both US stocks and cryptocurrencies. Led by chief investment strategist Michael Hartnett, the analysis reported a staggering $56.1 billion increase in U.S. stock funds. This is the largest influx in a single week ever recorded.
Furthermore, cryptocurrencies experienced a major milestone with $3.4 billion in inflows.
Bitcoin spot ETFs attract major players
The cryptocurrency landscape is witnessing renewed institutional interest, with Bank of America’s Merrill Lynch and Wells Fargo offering spot bitcoin exchange-traded funds (ETFs) to their clients. This shows the growing acceptance of digital assets among traditional financial institutions.
Since the Securities and Exchange Commission approved these investment vehicles in January, there has been great interest in how they would integrate into major US brokerage platforms.
According to ETF analyst Eric Balchunas, US growth stocks and Bitcoin have become the dominant narratives, capturing significant investor interest and capital inflows. Corporate bonds are also prominent in the mix. Both Japanese and emerging markets (EM) ETFs have an unusual but notable presence on the investment scene. On the other hand, despite reaching all-time highs (ATH), gold ETFs are lagging behind.
Bubble concerns
The influx of investments into tech stocks and cryptocurrencies indicates strong market enthusiasm, but Bank of America’s Hartnett has expressed concern about potential bubble characteristics in these sectors.
The rapid rise of the tech industry’s leading companies, coupled with record highs in cryptocurrency values, suggests a market environment filled with “tremendous euphoria.”
This sentiment is compounded by reaccelerating inflation and weakening growth numbers, which Hartnett says indicates a bubble mentality among investors.
