• CoinShares reports that institutional investors have been pouring billions into the crypto markets since 2021.
• Last week saw $137 million invested in the cryptocurrency markets, with most of it being allocated to Bitcoin.
• Other coins such as Litecoin (LTC), Solana (SOL), XRP, Cardano (ADA), and Polygon (MATIC) enjoyed inflows of less than $0.5 million while Ethereum (ETH) suffered outflows of $1.6 million.
CoinShares Reports Institutional Investors Pumping Billions into Crypto Markets
CoinShares, a digital assets manager, has found that institutional investors have been increasing their conviction in Bitcoin (BTC) and other cryptocurrencies more than they have since 2021. In its latest Digital Asset Fund Flows Weekly Report, CoinShares revealed that last week alone saw $137 million invested in the crypto markets. This is part of a four-week run of inflows totaling up to $742 million – the largest amount seen since late 2021.
US Investors Lead Institutional Investment Run
Most of these investments are said to be coming from North American investors, with US investors accounting for $109 million worth of inflows by themselves. Bitcoin unsurprisingly dominated the majority of these investments at 99%, taking home a total investment amounting to $140 million. Meanwhile short Bitcoin investment products saw outflows reaching approximately $3.2 million over the past 12 weeks, resulting in total assets under management falling from its April peak value of around $198 million down to just about 55 million now.
Investment Into Altcoins
Other altcoins also enjoyed some benefits from institutional investment last week too – though not as much as Bitcoin – with Litecoin (LTC), Solana (SOL), XRP, Cardano (ADA) and Polygon (MATIC) all receiving less than 0.5% each worth around 0.5 million or less each in investments last week. The only coin to suffer any kind loss was Ethereum which experienced outflows amounting to around 1.$6 Million last week according to CoinShare’s report..
Crypto Trading Volumes Surge
The massive influx of institutional investments led trading volumes on digital asset investment products soaring well above its yearly average rate at 2$3 billion for just last week alone compared to an average rate previously standing at 1$4 billion per year according to CoinShare’s report.. This means that digital asset investment product trading currently amounts for 11 %of total crypto volume compared to its previous average rate standing at 2%.
Institutional investors appear confident in cryptocurrencies this year judging by how much money they’ve been putting into various projects this past month and longer term going back as far as 2021 according to CoinShare’s report.. With most money going towards Bitcoin and other altcoins also receiving enough attention from investors it appears as if the crypto market could see another wave similar or even larger than what we saw in 2021 soon if current trend continues throughout this summer season..