James Atkins
Editor
Editor
While the market was jittery following the collapse of Terra’s LUNA and UST, bitcoin funds saw weekly inflows of around $300 million.
The price drop was beneficial for investors, who add $299 million to Bitcoin (BTC) funds after buying into the decline. According to CoinShares’ Digital Asset Fund Flows Weekly Report.
“Bitcoin was the primary benefactor, with inflows totaling US$299m last week, suggesting investors were flocking to the relative safety of the largest digital asset. Short-Bitcoin saw minor inflows totaling US$0.7m, a slow-down from previous weeks.”
This is the second-highest ever weekly inflow into Bitcoin funds, following last week’s $305 million. The inflows come despite Bitcoin’s price dropping below $50,000 on some exchanges.
CoinShares notes that the inflows were driven by three large institutional investors, each adding over $100 million to their Bitcoin funds.
The report also notes that Bitcoin’s dominance of the cryptocurrency market has risen to 62.7%, its highest level since March 2018.
This is due to the sell-off in altcoins, which have seen their market capitalizations decline; by around $60 billion over the past week.
Over the week, European investors sent out $38 million in outflows, with sentiment being “extremely divided.”
In total, inflows into crypto investment products totaled $274 million over the last week.
Bitcoin’s price has been volatile in recent weeks, falling below $10,000 earlier this month before climbing back above $11,000.
At the time of writing, Bitcoin is trading at around $11,300, up 1.5 Bitcoin. Bitcoin’s price has fallen by around 20% over the past week, though it is still up by nearly 60% since the start of the year.
The data from CoinShares comes as Bitcoin’s price dipped below $50,000 for the first time in two weeks.
The sell-off was sparked by some factors, including Tesla’s announced plans to sell $1.5 billion worth of Bitcoin; as well as worries about new regulations in China.
Still, Bitcoin has been on a tear this year and is up more than 80% since January 1. Investors seem to be undeterred by the recent price dip, with inflows into Bitcoin products totaling $300 million over the past week. According to CoinShares.
Even though Bitcoin attracted more money, Ethereum recorded outflows of $27 million.
Year-to-date, Ethereum solutions have resulted in outflows of $236 million, or 2.6% of total assets under management (AUM). The year’s first week witnessed inflows into Bitcoin solutions of $463 million.
Terra’s AUM fell 99%, although some investors still managed to add to positions by $0.043 million. Bitcoin SV’s solutions had inflows of $0.021 million, and Bitcoin Cash –outflows of $0.022 million.
CoinShares’ data also shows that institutional investors were buying Bitcoin during the two-day price decline.
Bitcoin is up 3.6% in the last 24 hours, trading at $30,750 as of this writing, according to CoinGecko. Ethereum’s ETH, on the other hand, is up 5.4%, trading at $2,120.
As Bitcoinist reports, Bitcoin’s price is still well above the $29,000 “support level” that some were calling a bottom following the weekend decline.
The overall cryptocurrency market capitalization is presently $1.07 trillion, up from $1.02 trillion yesterday. BTC’s dominance over the total crypto market has increased slightly to 69%.
For the institutional investors to pump such money into Bitcoin, is an indication of their believe that the cryptocurrency; will rebound in a very big way.
The case for cryptos especially Bitcoin is always a very interesting one. Which side of the divide are you? It will be nice to know your thoughts.
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
