Digital asset investment products registered positive inflows last week, although profits were mostly concentrated in Bitcoin (BTC) funds, indicating a more cautious approach to the distribution of cryptocurrencies by institutional investors.
In the week ending Saturday, Bitcoin investment products posted a cumulative inflow of $126 million, according to the latest fund flow report from CoinShares. Since the beginning of the year, Bitcoin investment funds have quietly added $506 million in net inflows.
It appears that investors are investing in bitcoin through ether (ETH) and other altcoins. Ethereum funds saw a $32 million outflow, marking a ninth consecutive week of declines. The outflow of funds from Ethereum investment products this year amounted to $357.4 million.
Meanwhile, investment in multi-asset crypto funds surged $4.3 million last week, bringing the year-to-date total to $201.3 million.
Grayscale remains the largest digital asset manager with over $27 billion under management. Approximately 99% of all Grayscale assets are dedicated to the Grayscale Bitcoin Trust, also known as GBTC.
BTC price approaches $32k as analyst warns of ‘boring’ summer for bitcoin
Unable to escape the gravitational pull of traditional financial markets, crypto assets have been in a protracted downtrend for most of 2022. The price of BTC has experienced nine consecutive weekly declines — the longest in history — as investor sentiment entered a prolonged period of “extreme fear.” in the Bitcoin Fear and Greed Index.
Bitcoin narrowly avoided falling for the tenth straight week, closing on Sunday at $29,900, just $450 higher than the previous week.
However, there are some positive signs that institutional investors believe the fall. In addition to the CoinShares report, a Canadian Bitcoin ETF managed by Purpose Investments raised thousands of BTC last month. By May 13th, the Purpose Bitcoin ETF registered the highest ever supply of bitcoin at 41,600 BTC.
Huge influx of Canadians #Bitcoin Target spot ETF. 6.9k $BTS were added to the fund yesterday. By far the largest influx we have seen (2nd largest was 2.9k BTC). AUM is at a new all-time high of 41.6k BTC.
Someone bought this cheap bitcoin. pic.twitter.com/zDkhcjlP1V
— Jan Wustenfeld (@JanWues) May 13, 2022
Credit : cointelegraph.com