Institutional bulls back Bitcoin after weeks of altcoin accumulation
|Institutional crypto appetites have shifted away from altcoin back to Bitcoin, with BTC investment products leading the inflows for digital asset products for the second week in a row.
Institutional investors are pivoting back to digital gold with Bitcoin (BTC) investment products posting a third consecutive week of inflows.
According to CoinShares’ latest Digital Asset Fund Flows Weekly report, BTC investment products generated $68.7 million worth of inflows between Sept. 27 and Oct. 1, representing a 36% increase in exposure week-over-week.
While products tracking BTC have now dominated inflows to digital asset products for two weeks in a row, the bullish turn comes fresh off a record streak of outflows that persisted for eight consecutive weeks until early September.
Total inflows for digital investment products were $90 million for the week, marking the seventh consecutive week of inflows as institutional investors continue to increase exposure to digital assets.
Institutional investors also snapped up a significant amount of Ethereum (ETH) investment products, with inflows totaling $20.2 million. BTC and ETH products gained roughly 7.4% and 3.2% for the week respectively.
There was also a mixed appetite for altcoins last week. Products tracking Cardano (ADA), and Solana (SOL) posting inflows of $1.1 million and $700,000 respectively, while Polkadot (DOT) and Binance Coin (BNB) fund shed $800,000 each. Multi-asset funds also saw minimal inflows of $1.9 million.
Institutional demand for Solana appears to have bottomed out, with inflows to products tracking SOL crashing by 98% since posting highs of $38.9 million five weeks.
Despite the markets recovering from July’s violent pull-back, CoinShares highlighted that last week’s trade volume of $2.4 billion remains low compared to the $8.4 billion worth of institutional crypto products traded weekly during the height of 2021’s bull cycle in mid-May.
According to CoinShares’ estimates, institutional asset managers currently represent combined assets under management (AUM) worth $57.1 billion combined — a weekly increase of 8.5%.
Grayscale continues to dominate the sector, representing $41.1 billion or 71% of the sector’s total AUM. CoinShares XBT and Purpose funds rank in second and third with $2.2 billion and $2.1 billion worth of AUM respectively.
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