Institutional Investors Embrace Bitcoin with Record Inflows
Digital assets manager CoinShares notes a significant increase in institutional investors' confidence in Bitcoin (BTC) and cryptocurrencies, surpassing levels seen since 2021.
Recent weeks have witnessed a remarkable surge in their interest, leading to substantial investments.
According to the latest Digital Asset Fund Flows Weekly Report by CoinShares, institutional investors poured an impressive $137 million into the crypto markets during the past week. This follows a four-week streak of inflows, accumulating a total of $742 million.
The report highlights that the cumulative inflows of $742 million over the last four weeks represent the most substantial trend of inflows since the final quarter of 2021. Trading volumes for digital asset investment products have consistently exceeded the yearly average of $1.4 billion, reaching $2.3 billion last week.
Notably, these volumes made up 11% of the total crypto volumes, compared to the usual 2%. Most of the inflows are attributed to North American investors, with US investors alone contributing $109 million.
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Bitcoin remains the primary choice for investors, capturing the majority of the inflows. Specifically, $140 million went directly into Bitcoin, representing 99% of all inflows. However, short Bitcoin investment products have experienced outflows for the 12th consecutive week, totaling $3.2 million.
This ongoing trend, combined with recent price appreciation, resulted in a decline in total assets under management for short Bitcoin, falling from the peak of $198 million in April to a mere $55 million.
During the same period, other cryptocurrencies, such as Litecoin (LTC), Solana (SOL), XRP, Cardano (ADA), and Polygon (MATIC), experienced inflows of $0.5 million or less, while Ethereum (ETH) suffered outflows amounting to $1.6 million.
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.
