Institutional investors are returning back to digital gold with Bitcoin (BTC). After shifting away from altcoins and now back to investment products posting for the 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 the BTC tracking product has now dominated inflows to digital asset merchandise for two straight weeks in a row. The bullish turn has just come from a record-breaking streak of outflows that continued for eight consecutive weeks until the early month of September.
Although the BTC price action remains in a narrow, interest-free range of around $ 40,000, big Bitcoin investors are anything but calm.
In recent weeks, these whales have moved more coins across the network than ever before – even more than during historic BTC / USD highs of $ 60,000 and above.
Transactions involving $ 10 million and more recently reached over $ 10 billion.
More info on Bitcoin
Total inflows for digital funding merchandise have been $90 million for the week. Marking the seventh consecutive week of inflows as institutional traders proceed to extend publicity to digital belongings.
Institutional investors also bought a significant amount of Ethereum investment products (ETH), with inflows totaling $ 20.2 million. BTC and ETH products gained around 7.4% and 3.2% respectively for the week.
There was additionally a blended urge for food for altcoins final week. Products monitoring Cardano (ADA), and Solana (SOL) posting inflows of $1.1 million and $700,000 respectively.
Whereas Polkadot (DOT) and Binance Coin (BNB) fund shed $800,000 every. Multi-asset funds additionally noticed minimal inflows of $1.9 million.
Solana (SOL) hit an all-time high of $ 216 on September 9 after rising 508% since August. The bull run has led some analysts to project a target of $ 500 which would translate into a market cap of $ 150 billion.
It should be noted that by the SOL rally, the Ethereum network’s average transaction fees had exceeded $ 40. A growing interest in the NFT market has accelerated investors’ transition to Solana, which was spurred by the launch of FTX’s NFT market in September. Both are fighting for the same user base of decentralized applications. And offer faster and cheaper transactions compared to Ethereum (ETH).
Institutional demand for Solana seems to have bottomed out, with inflows to merchandise monitoring SOL crashing by 98% since posting highs of $38.9 million in five (5) weeks.
Despite the markets recovering from July’s violent pullback. And also, CoinShares highlighted that the final week’s commerce quantity of $2.4 billion. Stays low in comparison with the $8.4 billion prices of institutional crypto merchandise traded weekly through the top of 2021’s bull cycle in mid-May.
According to CoinShares estimates, institutional asset managers currently represent combined assets under management (AUM) with a combined value of $ 57.1 billion, 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.