Crypto Institutional Investors Are Frontrunning Retail As Inflows Reach Record Highs
13 March 2024 - 12:30AM
NEWSBTC
Crypto investment products continue to shine in the middle of a
strong bullish market sentiment. New data has shown institutional
investors and traders are now going full speed on crypto investment
products, allowing inflows to attain a new inflow record. According
to CoinShares, a digital asset investment firm, digital investment
products registered a record weekly inflow of $2.7 billion last
week, pushing the year-to-date inflow near a new record. Crypto
Institutional Investors Continue To Aim Higher The crypto market
has attracted its fair share of rich visionaries and institutional
traders over the years, with most just dabbling in and out. Recent
market factors, however, have opened the industry and made it
palatable to big traders. As a result, trading volume from this
cohort of investors has ballooned to new highs. Related Reading:
Record $1 Billion In Shorts Risk Liquidation If Bitcoin Hits This
Price In its latest weekly report, CoinShares noted that investment
products based on cryptocurrencies reached a new milestone of $2.7
billion inflow last week, bringing the run to six consecutive weeks
of inflows. Hence, the total inflow year-to-date is now at $10.3
billion, just $300 million shy of the $10.6 billion inflows
recorded in 2021. To put this into perspective, we’re less than
three months into 2024, and inflows are already on par with those
recorded throughout the bullish cycle in 2021. At the same
time, trading volume reached a new record of $43 billion for the
week, smashing the $30 billion record set in the previous week.
Unsurprisingly, most of this activity can be credited to Bitcoin,
with the majority of inflow going into the cryptocurrency.
According to CoinShares, Bitcoin remained the focus of investors to
attract $2.6 billion in inflows last week, representing 96% of the
total inflow. This comes despite a $1.65 billion outflow from
Grayscale’s Spot Bitcoin ETF. Speaking of Spot Bitcoin ETFs,
there’s no denying the fact that these investment vehicles have
been the primary catalyst for Bitcoin’s recent growth. This has
allowed Bitcoin to break over various price resistance to reach new
all-time highs. Last week, the 10 ETFs in the US ended the week at
a net inflow of $2.238 billion, with BlackRock and Fidelity leading
the charge. Despite recent price rises, short Bitcoin products also
recorded $11 million in inflows last week. Related Reading: Cardano
Price About To Explode: Crypto Pundit Reveals Next Target On the
other hand, Ethereum investment products witnessed an outflow of
$2.1 million last week to reverse $84.7 million inflows recorded in
the prior week. This is despite Ethereum crossing over the $4,000
price level for the first time in two years. The reverse case is
for Solana, which witnessed $24 million inflows after an outflow of
$11.9 million in the previous week. Polkadot, Fantom,
Chainlink, and Uniswap also saw inflows of $2.7 million, $2
million, $2 million, and $1.6 million, respectively. Total market
cap climbs to $2.62 trillion | Source: Crypto Total Market Cap on
Tradingview.com Featured image from CIM-Cyprus Business School,
chart from Tradingview.com
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