Cryptocurrency investment products saw another week of inflows, building on the previous week’s inflows. According to data from CoinShares, digital asset investment products saw inflows of $1.44 billion last week, another indicator of the return of bullish momentum to the cryptocurrency industry. This brings the total inflows to $1.881 billion in the two weeks following three consecutive weeks of outflows. Compared to last week’s numbers, total cryptocurrency investment fund inflows this year now stands at a record $17.8 billion.
Bullish Turn Among Institutional Crypto Investors
The latest data shows that cryptocurrency investment products are starting to reflect the overall shift in market sentiment, as CoinShares noted latest weekly report, This shift to growth has allowed digital investment products to surpass the $10.6 billion inflows seen during the 2021 bull run.
Inflows last week totaled $1.44 billion, the fifth largest weekly inflow on record. No wonder, Bitcoin got the lion’s share investment. As the world’s first and largest crypto asset, Bitcoin has always been the center of attention among other cryptocurrencies. The cryptocurrency has also been in the spotlight for the past few months since the launch of the Spot Bitcoin ETF. A return of bullish momentum allowed Bitcoin to receive $1.35 billion last week, which is also the fifth-largest weekly inflow in Bitcoin’s history. Significantly, this inflow came amid concerns about selling pressure from sale over 45,000 BTC from the German state of Saxony.
On the other hand, short-Bitcoin products saw outflows worth $8.6 million. Low-Bitcoin products are designed for investors who anticipate a decline in the price of Bitcoin. With this in mind, it can be concluded that the withdrawal of compact positions is a manifestation of the decreasing pessimism of institutional investors.
Ethereum led the altcoin market with a net inflow of $72 million, which enabled the total net inflow this year to be reversed from negative $15 million at the beginning of the week to $57 million by the end of the week. Solanum listed products followed suit with a net inflow of $4.4 million, down 270% from $16.3 million the previous week. At the time of writing, Solana’s total inflows this year stand at $62 million.
Litecoin, XRPAND Cardan recorded inflows of USD 1.2 million, USD 1.0 million and USD 1.2 million, respectively. Multi-asset investment products also recorded inflows of USD 17.2 million.
ETPs continue to be one of the best ways for institutional investors to gain exposure to cryptocurrencies like Bitcoin and Ethereum. Their utilize has been growing since the beginning of the year, especially in North America. In terms of geography, the United States had the most inflows with $1.274 billion, Switzerland with $57.5 million, Hong Kong with $54.6 million, and Canada with $23.2 million, among others.
According to CoinShares, total assets under management (AuM) currently stand at $84.713 billion.
Featured image created with Dall.E, chart from Tradingview.com
