In a recent report, digital assets manager CoinShares revealed that institutional investors poured a staggering $2 billion into crypto products in just one week. This influx of investment marked a significant increase, equaling the total investments from the four weeks prior. The report highlighted that digital asset investment products saw total inflows of $2 billion, bringing the recent five-week run of inflows to $4.3 billion. Additionally, trading volumes in Exchange-Traded Products (ETPs) rose to $12.8 billion for the week, representing a 55% increase from the previous week.
Regionally, the United States accounted for nearly $2 billion in inflows alone, with the record third-largest daily inflow records being set on the first day of the period. Bitcoin (BTC), the largest cryptocurrency by market cap, received the majority of the inflows at $1.97 billion. Interestingly, short-bitcoin products saw outflows for the third consecutive week, totaling $5.3 million. Among altcoins, Ethereum (ETH) led the pack with $69 million in inflows, followed by XRP, Chainlink (LINK), Solana (SOL), and BNB which brought in $1.2 million, $0.7 million, $0.7 million, $0.7 million, and $0.2 million respectively.
CoinShares attributed the surge in institutional investments to a change in sentiment driven by weaker than expected macro data in the US, leading to increased expectations of a monetary policy rate cut. This change in sentiment has resulted in a reversal from previous outflows from incumbents to inflows in digital asset investment products. The report also highlighted that inflows were seen across almost all providers, indicating a widespread interest and participation among institutional investors in the crypto market.
To stay updated on the latest developments and trends in the crypto market, interested readers can subscribe to get email alerts delivered directly to their inbox. They can also follow CoinShares on various social media platforms like X, Facebook, and Telegram for real-time updates and insights. The generated image accompanying the report, labeled Midjourney, serves as a visual representation of the current state of the cryptocurrency market, reflecting the ongoing surge in institutional investments and the changing sentiment among investors towards digital assets. As the crypto market continues to evolve and attract increasing interest from institutional investors, staying informed and connected through various channels is crucial for those looking to navigate this rapidly growing industry.
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