Bitcoin (BTC) has become the primary focus for institutional investors in the last two weeks, according to a report by CoinShares. The report, released on July 3, highlighted that Bitcoin-related products received $310.6 million in inflows over the past two weeks, representing the majority of crypto product inflows.
James Butterfill, CoinShares’ Head of Research, noted that Bitcoin remained the primary focus for investors, with the last two weeks’ inflows accounting for 98% of all digital asset flows.
This recent surge in inflows is a reversal from the previous nine consecutive weeks of outflows. However, short Bitcoin products experienced a minor outflow of $0.9 million in the last week.
Interestingly, this is the second time this year that Bitcoin products have accounted for 98% of inflows into cryptocurrency investment products. This surge in popularity comes amidst a significant increase in Bitcoin’s price and dominance in the market.
One of the key factors driving this surge in Bitcoin investment is the filing of BlackRock’s spot Bitcoin ETF application on June 15. This filing was followed by similar filings from other major players in the financial industry, including Fidelity, Invesco, Wisdom Tree, and Valkyrie.
Since the filing, the price of Bitcoin has increased by 25.2% to $31,131 at the time of writing. Additionally, Bitcoin’s dominance, which measures its market cap relative to the total market cap of all cryptocurrencies, has risen to 51.46%.
While Bitcoin has been the primary focus for institutional investors, Ethereum has also seen a reversal in its investment trend. Ethereum investment products received $2.7 million in inflows last week, marking the second consecutive week of inflows after a lengthy outflow period.
According to Fireblocks CEO Michael Shaulov, there is significant interest from institutional investors in core assets like Bitcoin and Ethereum. However, there is less interest in alternate cryptocurrencies. Shaulov explained that the narrative around Ethereum is centered on its potential as the foundation for future tokenization ecosystems, making it a valuable utility asset.
As for Bitcoin, Shaulov noted that there is no specific narrative driving institutional investment, but most investors recognize the need to hold the cryptocurrency.
In conclusion, Bitcoin continues to attract the attention of institutional investors, with significant inflows into Bitcoin-related products. Ethereum has also experienced a turnaround in investment trends. Both Bitcoin and Ethereum remain highly sought-after assets among institutional investors, despite the ongoing volatility and market fluctuations in the crypto industry.
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