Institutional Investors Drive Crypto Market Surge: CoinShares Report
CoinShares, a digital assets manager, has reported a surge in institutional investors' participation in the crypto markets, leading to improved market sentiment.
According to CoinShares’ recent Digital Asset Fund Flows Weekly Report, institutional investors have made substantial investments in the market, marking the highest level of inflows in 2023.
This surge was triggered by the news of BlackRock’s submission of a Bitcoin (BTC) exchange-traded fund (ETF) application to the US Securities and Exchange Commission (SEC).
The report states, “Investment products focused on digital assets experienced the largest weekly inflows since July 2022, amounting to a total of $199 million. This influx effectively corrected almost half of the outflows over the previous nine weeks. Additionally, trading volumes for exchange-traded products (ETPs) reached 170% of the average volume for this year, totaling $2.5 billion for the week.”
The positive sentiment prevailing in the market is primarily attributed to recent announcements made by prominent ETP issuers, who have filed for physically backed ETFs with the US Securities & Exchange Commission. Consequently, the total assets under management (AuM) have now reached $37 billion, the highest since the collapse of 3 Arrows Capital.
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Bitcoin (BTC) products attracted most of the inflows, totaling $188 million, which aligns with its market share. On the other hand, short-BTC products witnessed outflows for the ninth consecutive week.
There was also a significant increase in inflows for Ethereum (ETH) and multi-asset exchange-traded products (ETPs), with $7.8 million and $8.1 million, respectively.
Furthermore, the previous week, altcoins such as XRP and Solana (SOL) experienced minor inflows of $0.24 million and $0.17 million, respectively.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
