Bitcoin Institutional Investment Sees Over $1 Billion Inflows in Less Than Two Months
Bitcoin (BTC) and other cryptocurrencies are once again attracting significant capital, with institutional investment vehicles receiving over $1 billion in new inflows in less than two months. This surge in investment is highlighted in the latest weekly report by CoinShares, a leading crypto asset management firm.
Crypto Institutional Product AUM Up 99% Year-to-Date
The excitement surrounding the potential approval of the United States’ first spot exchange-traded fund (ETF) has led to price gains for Bitcoin, Ether (ETH), and major altcoins. Since November 2022, the total crypto market cap has increased by $600 billion, according to data from TradingView. However, the past two months have witnessed a significant increase in funds being deployed to crypto investment products. CoinShares reports that digital asset investment products received inflows totaling $293 million last week, surpassing the $1 billion mark for the past seven weeks and bringing the year-to-date inflows to $1.14 billion. This makes it the third-highest yearly inflow on record.
Impressive statistics also reveal the growth in assets under management (AUM) for crypto exchange-traded products (ETPs). Since the beginning of the year, the AUM has nearly doubled, with a 10% increase in the past week alone. CoinShares notes that the total AUM now stands at $44.3 billion, the highest since the major crypto fund failures in May 2022.
The report further highlights that investors aiming to long BTC have dominated the volume, with inflows totaling $240 million last week and year-to-date inflows reaching $1.08 billion. On the other hand, short-Bitcoin saw outflows of $7 million, indicating continued positive sentiment.
“This is What Adoption Looks Like”
The renewed interest in cryptocurrencies has prompted on-chain analytics firm Glassnode to reassess Bitcoin supply dynamics. With the next block subsidy halving just five months away, the amount of BTC being stored is now outpacing the amount mined by 2.4 times, as shown in Glassnode’s latest edition of its weekly newsletter, “The Week On-Chain.”
Glassnode comments, “The fourth halving event is fast approaching and represents an important fundamental, technical, and philosophical milestone for Bitcoin. For investors, it is also an area of intrigue given the impressive return profile in prior cycles.”
One of the accompanying charts in the newsletter displays BTC supply storage by long-term holders (LTHs), who hold coins for 155 days or more. Additionally, Philip Swift, creator of the statistics platform Look Into Bitcoin, highlights the increasing number of wallet entities, both large and small, stating, “This is what adoption looks like.”
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