Institutional Investors Pump $136M into Crypto Markets

Updated: 11 months

Institutional Investors Pour $136M into Crypto Markets

• Digital assets manager CoinShares found that institutional investors poured $136 million into the crypto markets last week, the third week of significant inflows in a row.
• Bitcoin took the lion’s share of the inflows at $133 million, continuing to be the main focus of investors.
• Ethereum (ETH), Litecoin (LTC), Solana (SOL), XRP, Polygon (MATIC) and multi-asset investment vehicles also saw inflows last week.

CoinShares Findings on Institutional Investors

CoinShares recently released its Digital Asset Fund Flows Weekly Report which highlighted that institutional investors are still bullish on Bitcoin (BTC) and altcoins as crypto sees over $136 million in inflows last week. According to the report, digital asset investment products had seen an impressive total of $470 million in inflows over three consecutive weeks, resulting in a net positive year-to-date flow of $231 million. Despite these big inflows, CoinShares also mentioned that trading turnover has slowed with investment products totaling only $1 billion for the week compared to a two-week average of $2.5 billion – likely due to seasonal effects such as lower volume typically seen during July and August.

Bitcoin Remains Focus Amongst Investors

The report showed that Bitcoin remains the focus amongst investors with inflows totaling $133 million last week while short-Bitcoin saw outflows of $1.8 million – its 11th consecutive week demonstrating investor favor towards BTC over altcoins at present. In addition to BTC’s influxes, Ethereum (ETH), Litecoin (LTC), Solana (SOL), XRP, Polygon (MATIC) and multi-asset investment vehicles also saw notable amounts of money entering their respective markets at rates ranging from 0.5 – 2.9 mln USD each respectively; Cardano (ADA) was an exception by experiencing outflows amounting up to 1.3 mln USD during this time period instead.

Seasonal Effects Could Impact Trading Volumes

Although institutional investors are showing strong signs of confidence through their continuous influxes into crypto markets, trading turnover is slowing down according to CoinShare’s report – potentially due to seasonal effects such as low volumes during summer months like July and August. As more data become available about market trends throughout these months it will be interesting to observe how these factors could impact overall trading volumes going forward for both Bitcoin and other cryptocurrencies alike.

Conclusion

Institutional investors have shown continued confidence through their massive influxes into Bitcoin and other cryptocurrencies recently; despite reports from CoinShare indicating slow trading turnover possibly due to seasonal effects such as low volumes during summer months like July and August, it is clear that cryptocurrency continues being one of the most attractive assets classes for institutional money presently which could further cement its place on Wall Street moving forward..

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