- Institutional investors put $160M into cryptocurrency investment products due to worries over traditional financing.
- Bitcoin saw the biggest influx with $128 million as the chain of outflows over six weeks ended.
- Digital assets manager CoinShares additionally reports inflows into Solana, Polygon and EXP.
Institutional financiers spent $160 million into digital asset investment products last week, as per digital assets manager CoinShares’ Digital Asset Fund Flows Weekly Report released Monday 27 March, with the largest portion of inflows going into Bitcoin.
Head of Research James Buttefill at CoinShares states that crypto investment products had seen outflows amounting to $408 million over the past six weeks. However, last week marked the highest volume of institutional funds entering the crypto investment space in eight months, since July 2022.
Biggest week of inflows since July 2022
The influx of institutional funds follows Bitcoin’s rally to nearly $29,000, with Ethereum and other altcoins also posting considerable gains. But Bitcoin has since lost some of its value and is now trading below $28k.
Butterfill notes that the influx of money came “relatively late” compared to the rest of the crypto market, which he believes is likely due to investors’ response to the current turmoil in traditional finance.
Bitcoin had $128 million in inflows, but Ethereum experienced a 3rd week of outflows
Bitcoin was the clear winner last week, with $128 million poured into BTC investment products as some CoinShares customers expressed sentiment of BTC being a safe haven. But there were also negative sentiments towards Bitcoin, with short-bitcoin inflows hitting $31 million last week.
On the other hand, Ethereum recorded outflows for the third straight week, with $5.2 million exiting Ether investment products. CoinShares believes the cause of this is anxiety around Ethereum’s upcoming network upgrade Shanghai, expected to take place on 12 April.
Among altcoins, the three coins that saw inflows were Solana ($4.8 million), Polygon ($1.9 million) and XRP ($1.2 million).