Large-scale investors are still showing confidence in Bitcoin as institutional inflows into Bitcoin-focused funds continue to increase, a recent report reveals.
According to the report by digital asset investment and trading group, CoinShares, investors sent over $114 million into big funds last week, marking the fourth consecutive week of similar-sized activity. The funds that experienced an influx of cash were primarily geared towards accredited investors such as Grayscale, 3iQ, and 21 Shares.
1/5: This week in #FundFlows, a weekly report by our Head of Research @jbutterfill.
Digital asset investment products saw US$114m inflows.
This 4-week run of inflows now total US$345m, almost fully correcting the prior 6-week run of outflows.
Read more in the thread 🧵 pic.twitter.com/ZLqr5aUlyG
— CoinShares (@CoinSharesCo) April 17, 2023
According to the analysis by Coinshares, Bitcoin is the main focus with $104 million invested there, adding that there are very low volumes of the cryptocurrency in the market.
“This improving sentiment comes at a time of very low volumes in the Bitcoin market, averaging just US$5.6bn per day compared to US$12bn for the full year,” said Head of Research at Coinshares, James Butterfill.
According to Butterfill, the rising sentiment for the asset class was down to ‘a flight to safety by investors fearful of the ongoing traditional finance challenges.’
Additionally, Butterfill wrote that Bitcoin is being seen as a ‘safe-heaven’ asset in the aftermath of the collapse of several crypto friendly banks including Silicon Valley Bank and Signature Bank.
On Ethereum, Coinshares notes that despite the blockchain’s successful Shapella upgrade, only $0.3 million of investor inflows targeted Ethereum-focused funds.
The recent upgrade enables users to access and potentially unstake the over 18 million $ETH staked on the Beacon Chain while optimizing transaction fees on the network. Users who staked their $ETH will get their original 32 $ETH and any accrued rewards or penalties.
Despite initial estimates by analysts suggesting that more than $300 million worth of cryptocurrency would be sold following the upgrade, the price of ETH has actually increased since the implementation of the upgrade.
At the time of writing, Bitcoin was trading at $29,414, a 2.9% decline over the past 24 hours, and below the $30,000 threshold it had recently surpassed, despite the heightened investor interest.
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