Journalist
Posted:
- Bitcoin recorded another week of institutional inflows
- OI in BTC Futures on global derivatives exchange CME rose to a two-year high
Bitcoin [BTC] attracted institutional funds worth $20 million last week, bringing total inflows since the start of the year to $1.7 billion. This according to the latter report by crypto asset management company CoinShares. Influential investors have poured significant portions of their capital into Bitcoin in recent weeks.
Bitcoin on the radar
The king of cryptos is benefiting from the euphoria surrounding the potential green lighting of a dozen odd Spot Exchange Traded Fund (ETF) filings. Investors hope that the approvals will pave the way for the mainstreaming of the digital assets and provide an easy way for TradFi participants to gain exposure to the crypto market.
In fact, Bitcoin has led the ongoing bull run, rising 60% since the rally began in mid-October. Along the way, it has regained crucial levels last visited before the bear market began in May 2022. However, it is worth pointing out that BTC had fallen below $42,000 on the charts at the time of writing.
When BTC rose in value, it wasn’t just bullish traders who invested in Bitcoin. Short Bitcoin positions saw inflows of $8.6 million last week, indicating some investors saw some downside potential.
The Open Interest (OI) in BTC Futures on global derivatives exchange CME rose to a two-year high of $5.28 billion, AMBCrypto found using Coinglass data. Since the start of the rally, the OI has more than doubled.
Source: Coinglass
For the curious, CME’s Standard Futures contract is worth five BTC and is seen as a barometer of institutional interest in cryptocurrencies.
Whales increase BTC’s appetite
Whale investors, a proxy for influential investors who own large amounts of cryptos, have increased their exposure to Bitcoin. The number of entities holding at least 1,000 coins is trending upward in the second half of 2022, according to AMBCrypto’s analysis of Santiment data.
This is additional evidence that Bitcoin experienced net buying from the institutional side.
Source: Glassnode
How much are 1,10,100 BTCs worth today?
Overall, the digital asset market recorded inflows totaling $43 million for the eleventh week in a row. The bullish sentiment associated with spot ETFs trickled down to Ethereum [ETH] and also the broader altcoin market.