Amid Crypto Bear Market, Institutional Investors Are Raiding Bitcoin: CoinShares

Digital asset investment products saw positive inflows last week, although the gains were mostly concentrated in Bitcoin ( BTC ), signali...


Digital asset investment products saw positive inflows last week, although the gains were mostly concentrated in Bitcoin (BTC), signaling a more cautious approach to crypto allocation by institutional investors.

Bitcoin investment products saw cumulative inflows totaling $126 million in the week ending Saturday, according to the latest fund flow report from CoinShares. Year-to-date, bitcoin investment funds have quietly added $506 million in net inflows.

Investors seem to be allocating to Bitcoin at the expense of Ether (ETH) and other altcoins. Ether funds saw outflows of $32 million, marking the ninth straight week of declines. Outflows from Ether investment products totaled $357.4 million this year.

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

Grayscale remains the largest digital asset manager with over $27 billion under management. Approximately 99% of Grayscale’s total assets are dedicated to Grayscale Bitcoin Trustalso known as GBTC.

Related: BTC price nears $32,000 as analyst warns of ‘boring’ summer for Bitcoin

Unable to escape the gravitational pull of traditional financial markets, crypto assets have been on an extended downtrend for much of 2022. The price of BTC has suffered nine consecutive weekly declines – the longest in the story – as investor sentiment entered a prolonged period of “extreme fear” on the Bitcoin Fear & Greed Index.

June 6, last week and last month: Bitcoin’s fear and greed index is in extreme fear territory.

Bitcoin narrowly avoided its tenth consecutive week of declines in closes at $29,900 on Sunday – just $450 more than the previous week.

Nevertheless, there are some positive signs that institutional investors are buying the dip. In addition to the CoinShares report, a Canadian cash bitcoin exchange-traded fund operated by Purpose Investments picked up thousands of BTC last month. On May 13, the Purpose Bitcoin ETF recorded its highest Bitcoin holdings at 41,600 BTC.