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June 27, 2022
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Guide & Analysis

Institutional interest in BTC recovers with the second consecutive week of positive inflows

Bitcoin is off to a great start in the fourth quarter as institutional trust in the cryptocurrency returns with weekly revenues of $68 million.

With the last quarter of the year underway, bitcoin regained its dominance in the amount of interest shown by institutional investors, as it leads the pack in weekly inflows.

According to the last report CoinShares’ weekly Digital Asset Fund Flows, institutional investors continued to increase their exposure to digital currencies. The asset class saw total entries of $90 million last week, representing the seventh consecutive week of positive entries.

More than 75% or $68.7 million of total tickets went into bitcoin investment products between Sept. 27 and Oct. 1, making this the second consecutive week that the biggest cryptocurrency has ever dominated.

Increased Trust in Bitcoin

The renewed confidence comes soon after bitcoin suffered the longest series of exits on record in nearly eight consecutive weeks, from late July to early September.

According to the report, the big turnaround in the amount of BTC inflows is evidence that institutional investors are becoming more confident in the cryptoactive.

“We believe this decisive turnaround in sentiment is due to growing confidence in the asset class among investors and more accommodative statements by the US Securities and Exchange Commission and the Federal Reserve,” said CoinShares.

Mixed Inflows for Altcoins

On the part of other cryptocurrencies, however, the report pointed out that entries were mixed, with some altcoins getting a lot of attention, while others – not much.

Investors have shown great interest in the Ether (ETH), as it posted revenues of around $20.2 million last week.

Cardano (ADA) had inflows totaling $1.1 million, multi-asset funds had inflows of $1.9 million, and Solana (SOL) had $700,000, a massive reduction of about 98% from rallies of $38.9 million.

On the other hand, Polkadot (DOT) and Binance Coin (BNB) did not fare well, as both recorded outflows of $800,000 each.

Still, despite the market’s gradual recovery from the July crisis, the report found last week’s $2.4 billion trading volume relatively small compared to the $8.4 billion weekly trading volume. during the May high.

In addition, the CoinShares document revealed that institutional asset managers currently have a combined asset under management (AUM) of $57.1 billion, with grayscale at the top of the list.

Source: CryptoPotato

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