Institutional investors have been showing renewed interest in cryptocurrency investment products, with total inflows over the past week reaching $114 million. The figure marks the fourth consecutive week of inflows, reaching a total of $345 million, which nearly reverses a six-week outflow trend that totaled $408 million.
Notably, the United States and Germany led the way, contributing $58 million and $35 million respectively to the inflows. This surge in investment comes at a time when Bitcoin trading volumes remain relatively low, averaging a mere $5.6 billion per day compared to the full-year average of $12 billion.
Despite the lower trading volumes, Bitcoin ($BTC) has once again captured the attention of investors, with inflows of $104 million last week, bringing its total four-week run to $310 million, according to CoinShares.
The firm’s report notes that the growing interest in the flagship cryptocurrency may be a result of an ongoing “flight to safety” from investors “fearful of the ongoing traditional finance challenges.”
However, opinions remain divided as short Bitcoin positions also saw inflows totaling $14.6 million last week. In contrast to Bitcoin’s success, Ethereum experienced a modest $300,000 in inflows last week, despite the successful launch of the Shapella upgrade on mainnet, allowing for the withdrawal of staked Ether.
The successful implementation of Shapella has seen the price of Ethereum surge, even as network validators are moving to withdraw a large portion of their earnings. As CryptoGlobe reported, nearly $2 billion worth of the second-largest digital currency by market capitalization are set to be withdrawn from the cryptocurrency’s network.
Altcoins have seen little activity, with the exception of Polygon, which recorded $2.1 million in outflows last week. Investment products focusing on $XRP and $ADA saw $100,000 of inflows each.
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