- The latest influx was the largest since October 2021.
- Bitcoin saw a capital infusion of over $132 million.
Digital asset investment products have continued their winning streak, registering their tenth consecutive week of inflows, according to the latest data report by crypto asset management company CoinShares.
Major investors are optimistic about the crypto market
Last week, institutional investors invested $176 million in cryptocurrencies, bringing the ten-week total to a whopping $1.76 billion.
These inflows were the largest since October 2021, when the futures-based exchange-traded fund (ETF) was launched in the US.
This time the enthusiasm was driven by spot ETFs. Indeed, there are a dozen applications for a Bitcoin ETF pending approval by the US Securities and Exchange Commission (SEC).
Additionally, at least seven applications for a spot Ether ETF have been submitted by some of the largest asset managers in the world.
In the latest run, total assets under management (AuM) rose to $46.2 billion, marking a 107% jump since the beginning of the year.
As expected, most of the inflows were centered around the world’s largest cryptocurrency, Bitcoin [BTC], for a total of more than $132 million. On a YTD basis, total capital inflows into Bitcoin reached a whopping $1.6 billion.
Source: CoinShares
The king of cryptos is leading the ongoing bull run. The coin reached levels last seen before the bear market began. Bitcoin recently recovered the $41,000 mark after 18 months and looked set to move further north.
Ethereum’s boom at the end of the year
Ethereum [ETH], the second most popular cryptocurrency, also witnessed net buying from the institutional side. With the latest inflow of $31 million, Ethereum’s five-week run rose to $134 million.
Furthermore, ETH’s annual net flows turned positive for the first time in 2023 at $10 million.
This was important because Ethereum was frowned upon by investors for a long time in 2023. Not long ago, Coinshares itself called it the “least liked altcoin.”
Institutional investor interest in cryptocurrencies would undoubtedly increase as the final deadline for approval of the ARK 21Shares Bitcoin ETF in January 2024 approaches.
This is evident from a recent report from the crypto exchange BiteThese investors held more than 50% of their assets in BTC and ETH as of September 2023. Furthermore, their portfolio allocation to BTC increased significantly in September.