Institutional cops support Bitcoin after weeks of accumulating altcoins


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Institutional investors are turning back to digital gold, with Bitcoin (BTC) investment products seeing inflows for a third straight week.

According to CoinShares’ latest Weekly capital flows for digital assets BTC investment products reportedly generated $ 68.7 million in inflows between September 27 and October 1, up 36% in exposure from the week.

While products tracking BTC have now dominated inflows into digital asset products for two consecutive weeks, the upturn comes after a record series of outflows that lasted eight consecutive weeks through early September.

Total inflows for digital investment products this week were $ 90 million, marking the seventh straight week of inflows as institutional investors continue to increase their exposure to digital assets.

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

The appetite for altcoins was also mixed last week. Products tracking Cardano (ADA) and Solana (SOL) posted inflows of $ 1.1 million and $ 700,000, respectively, while Polkadot (DOT) and Binance Coin (BNB) lost $ 800,000 each. Multi-asset funds also saw minimal inflows of $ 1.9 million.

Institutional demand for Solana appears to have bottomed out as inflows into SOL tracking products plummeted 98% from hitting highs of $ 38.9 million in five weeks.

Although markets are rebounding from the sharp retreat in July, CoinShares insisted that trading volume last week was $ 2.4 billion, compared to the $ 8.4 billion institutional crypto products that peaked of the 2021 bull cycle traded weekly in mid-May remains low.

Related: These 3 indicators flashed bullish ahead of the recent Bitcoin price pump

CoinShares estimates that institutional asset managers currently represent combined assets under management (AUM) valued at $ 57.1 billion – a weekly increase of 8.5%.

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