Institutional bulls return to bitcoin after weeks of altcoin accumulation

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Institutional investors are returning to digital gold with Bitcoin (BTC) investment products that have posted the third consecutive week of inflows.

According to the latest CoinShares Digital Asset Fund streaming weekly In the report, BTC investment products generated $68.7 million in inflows between September 27 and October 1, representing a 36% increase in exposure week by week.

While BTC-tracking products have now dominated inflows into digital asset products for two consecutive weeks, a fresh bullish turn comes from a record series of outflows that lasted for eight consecutive weeks through early September.

Digital investment product inflows totaled $90 million for the week, marking the seventh consecutive week of inflows as institutional investors continue to increase their exposure to digital assets.

Institutional investors also acquired a significant amount of Ethereum (ETH) investment products, with total inflows of $20.2 million. BTC and ETH products are up 7.4% and 3.2% for the week, respectively.

There was also a mixed appetite for altcoins last week. Tracking products Cardano (ADA) and Solana (SOL) are posting inflows of $1.1 million and $700,000, respectively, while Polkadot Fund (DOT) and Binance Coin (BNB) each lost $800,000. The multi-asset funds also saw a minimum inflow of $1.9 million.

Institutional demand for Solana appears to be bottoming out, as inflows into products that track SOL are down 98% since hitting a five-week high of $38.9 million.

Despite the markets recovering from the violent downturn in July, CoinShares highlighted that last week’s trading volume of $2.4 billion remains low compared to the $8.4 billion worth of institutional crypto products trading weekly during the peak of the 2021 bullish cycle in mid-May.

Related: These 3 indicators flashed higher before the recent Bitcoin price rally

According to CoinShares estimates, institutional asset managers currently account for a combined $57.1 billion in assets under management (AUM) — an 8.5% weekly increase.

Grayscale continues to dominate the sector, representing $41.1 billion or 71% of the sector’s total AUM. CoinShares XBT and Purpose funds ranked second and third with $2.2 billion and $2.1 billion in assets under management, respectively.