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October 4, 2022
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– Bitcoin, cryptocurrencies and blockchain technology.

According to the latest CoinShares data, the total inflow of funds to cryptocurrency funds increased by 660% compared to last year and reached the level of USD 5.57 billion.

This huge increase was likely to be driven by improved investor prospects for the digital asset class, especially Bitcoin, which is seen as a hedge against inflation and as an alternative to the depreciating dollar. – we read in the report.

Bitcoin on Sunday reached ATH above $ 24,000. After the recent drop to $ 22,300, it is now hovering around $ 23,000

The current leap is sure to attract new retail money, but we are already seeing adoption amid new developments. I think the question is whether the institutions can afford not to participate and for how long.

Julius de Kempenaer, Senior Technical Analyst at StockCharts said.

According to him, there are only a few big players in the cryptocurrency ecosystem. It is “mostly crowded with traders and retail investors.”

Last week, in terms of weekly flows, cryptocurrency investment products recorded a flow of $ 335 million. Bitcoin flows were just over $ 313.8 million, and Ethereum was $ 7.6 million. As for this year, so far investors have poured about $ 15.6 billion into BTC funds and products. Meanwhile, USD 2.5 billion flowed into Ethereum.

Institutions already have 5% of the BTC supply

In fact, institutions already own around 5% of the current BTC supply. According to Tradeblock, Grayscale is the largest institutional holder of BTC. The world’s largest crypto fund recorded inflows of $ 250 million in the last week alone. Thus, his AUM increased to $ 15.3 billion. According to the Coinshares report, Grayscale has amassed nearly $ 5 billion this year alone.

More institutional investors entered the Bitcoin market in the last week. Among them were companies such as One River and Ruffer Investments. One River has approximately $ 600 million in Bitcoin and plans to increase its stake to $ 1 billion in Q1 2021. Ruffer has revealed that he owns over $ 750 million in Bitcoin, which is 2% of the AUM of one of the company’s funds.

Additionally, MicroStrategy ended its $ 650 million convertible bond offering last week. On Monday, its CEO – Michael Saylor announced that he had bought another 30,000 BTC from the funds raised.

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