Institutional Investors Continue Crypto Allocations Between Market Surge

Blue-chip investors are increasingly directing their capital to Bitcoin (BTC) and cryptocurrency investment products as markets continue to rise significantly, according to digital asset management CoinShares.

According to CoinShares’ most recent fund flows report, institutional investors contributed $176 million to the cryptocurrency markets last week, continuing a 10-week trend that has seen an accumulation of $1.76 billion, or 4% of assets under management (AUM), over the course of the previous 10 weeks. This constant flow of capital is the largest since October 2021, when the futures-based exchange-traded fund (ETF) was introduced in the US.

Regional Activity and Asset Preferences

Canada, Germany, and the United States were the main destinations of institutional activity, with inflows of $79 million, $57 million, and $54 million, in that order. Interestingly, there were $15 million in small outflows from Hong Kong. With $133 million in inflows following a three-week stretch of outflows, Bitcoin emerged as the main winner. Significant support was also shown for Ethereum, which witnessed $31 million in inflows last week, continuing a five-week trend that saw $134 million in total. Ethereum’s net flows turned positive at $10 million for the first time this year, marking a change from the previous negative feeling.

The steady stream of institutional inflows indicates that blue-chip investors are becoming more confident in the potential profits offered by the cryptocurrency market. Since Bitcoin and Ethereum are still the most popular options, things are looking up, as seen by their positive net flows and the overall market boom. The aforementioned trend highlights the growing recognition of digital assets as a feasible constituent of institutional portfolios, hence aiding in the continuous development of the cryptocurrency investment terrain.