Institutional investors are seemingly increasingly turning to cryptocurrencies, as crypto investment products have recently seen a significant influx of funds, with products focusing on Bitcoin, Ethereum, and XRP leading the pack.
According to CoinShares’ latest Digital Asset Fund Flows report, last week saw $136 million flow into cryptocurrency investment products, marking a robust period of growth over the past three weeks. A total of $470 million were poured into digital assets during this period, offsetting the outflows of the past nine weeks.
While trading turnover has experienced a slowdown, with investment products totaling $1 billion for the week, down from an average of $2.5 billion in the prior two weeks, the net positive year-to-date flows stand at a substantial $231 million
It’s worth noting this drop in volume is considered seasonal, as trade activity traditionally declines during the summer months of July and August. Bitcoin-focused investment products notably led inflows, with institutional investors moving $133 million into these products last week.
Products betting against Bitcoin meanwhile saw $1.8 million of outflows, while Ethereum investment products saw $2.9 million of inflows. The digital asset has only marginally benefitted from the improved investor sentiment, with the last three weeks of inflows representing a mere 0.2% of total assets under management (AUM).
Ethereum’s net flows year-to-date remain negative, with investors moving $63 million out of these products so far this year. Similarly, products focusing on multiple digital assets have seen $200,000 of inflows last week, but $35 million of outflows throughout this year.
Other notable altcoins, including Solana ($SOL), $XRP, Polygon ($MATIC), Litecoin ($LTC), and Aave ($AAVE), have also seen inflows, albeit to varying degrees. In contrast, Cosmos ($ATOM) and Cardano ($ADA) experienced minor outflows.
Not to be left behind, Blockchain equities – stocks of companies engaged in the development of blockchain technologies – have witnessed their largest inflows for the year, totaling $15 million.
Featured image via Unsplash.
