In the midst of the crypto bear market, institutional investors are picking up Bitcoin: CoinShares

by · July 5, 2022

Digital asset investment products recorded positive inflows last week, although gains were mainly concentrated in Bitcoin (BTC) funds, signaling a more cautious approach to cryptocurrency allocation on the part of institutional investors.

Bitcoin investment products saw cumulative inflows totaling $ 126 million in the week ending Saturday, according to the latest fundraising report from CoinShares. So far this year, Bitcoin investment funds have quietly added $ 506 million in net income.

Investors seem to be allocating to Bitcoin at the expense of Ether (ETH) and other altcoins. The Ether funds received $ 32 million in outflows, marking the ninth consecutive week of decline. Outflows from Ether investment products have been $ 357.4 million this year.

Meanwhile, investments in multi-asset crypto funds increased by $ 4.3 million last week, bringing the total to $ 201.3 million so far.

Grayscale remains the largest single digital asset manager with more than $ 27 billion under management. The vast majority of Grayscale’s total assets are devoted to the Grayscale Bitcoin Trust, also known as GBTC.

Related: The BTC price is approaching $ 32K as analysts warn of “boring” summer for Bitcoin

Unable to escape the gravitational pull of traditional financial markets, cryptocurrencies have been on a long-term downward trend for much of 2022. The BTC price withstood nine consecutive weekly declines – the longest in history – as investor sentiment entered a long period of ” extreme fear “on the Bitcoin Fear & Greed Index.

June 6, last week and last month: The Bitcoin Fear & Greed Index has been in extreme fear territory.

Bitcoin barely escaped its tenth week in a row by closing at $ 29,900 on Sunday – just $ 450 higher than last week.

Nevertheless, there are some positive signs that institutional investors are buying dipped. In addition to the CoinShares report, a Canadian spot acquired Bitcoin-traded fund run by Purpose Investments thousands of BTC last month. By May 13, the Purpose Bitcoin ETF had registered its highest Bitcoin holdings ever at 41,600 BTC