YEREVAN (CoinChapter.com) — Digital asset investment products received $261 million last week from institutional investors, according to the latest Digital Asset Fund Flows Weekly Report from CoinShares. The recent influx marks the sixth consecutive week of positive inflows for the crypto sector.
Moreover, this takes the institutional investors’ netflow into crypto funds to $767 million, higher than 2022’s $736 million.
“This run of inflows now matches the July 2023 run of inflows and is the largest since the end of the bull market in December 2021,”
the report reads.
Why Did Institutional Investors Pour Money Into Crypto Markets?
Bitcoin (BTC), the largest cryptocurrency by market cap, saw the most substantial increase in its share of inflows. Per the report, it received $229 million from investors in 2023.
“Bitcoin saw the lion’s share of inflows, totaling US $229 million, bringing year-to-date inflows to US $842 million, likely buoyed by the increasing likeliness of a spot-based ETF in the US and weaker than expected macro data, bringing into question the efficacy of US monetary policy,”
the report said.
The Digital Asset Fund Flows Weekly Report, meanwhile, suggested the increase in interest for BTC came in anticipation of a potential approval of a Bitcoin spot exchange-traded fund (ETF).
Should the Securities and Exchange Commission (SEC) approve a spot BTC ETF, the markets could see a further surge in the asset’s popularity among traders and investors. The spike in interest from institutional investors could indicate that Bitcoin (BTC) is bracing for a major bull run ahead.
Ethereum Picks Momentum
Ethereum (ETH), which trails only behind Bitcoin by market cap, was also an investor favorite. It saw its largest inflows since August 2022, totaling $17.5 million.
The data comes as a relief for the ETH community. Earlier in the year, Ethereum had experienced outflows totaling $107 million. However, as the report suggests, it has rebounded with the most substantial inflow since August 2022.
In addition, other altcoins like Binance (BNB), Litecoin (LTC), XRP, Chainlink (LINK), and Cardano (ADA) also saw significant inflows.
While Solana (SOL) received $11 million in inflows, Chainlink (LINK) saw $2 million come in. These altcoins collectively accounted for 17% of the total assets under management.
Meanwhile, Polygon (MATIC) and Cardano reportedly received inflows of $800,000 and $500,000, respectively.
