Bitcoin products make up around 98% of all crypto investment product inflows.
CoinShares, a digital asset management company, points out that Bitcoin (BTC) has been the focal point for institutional investors over the past few weeks.
James Butterfill, Head of Research at CoinShares, disclosed in a July 3rd report that Bitcoin-centric products attracted a whopping $310.6 million inflow in the past two weeks.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Create an NFT: Easiest Way (Animated Explainer)
This represents the vast majority of crypto product inflows. In the report, Butterfill noted:
Bitcoin remained the primary focus of investors <...> with the last 2 weeks inflows representing 98% of all digital asset flows.
This influx over the last few weeks signifies a change from the prior trend of nine consecutive weeks of outflows. Bitcoin short products, however, experienced a negligible outflow of $0.9 million over the previous week.
This marks the second instance this year, where Bitcoin products made up 98% of the inflows into crypto investment products.
Analysts attribute this surge in Bitcoin prices and inflows to BlackRock's spot Bitcoin ETF application on June 15th, quickly followed by similar applications from heavyweight firms such as Fidelity, Invesco, WisdomTree, and Valkyrie.
After these filings, Bitcoin's price surged by 25.2%, trading at $31,036 at the time of writing.
Together with the rising Bitcoin prices, the Crypto Fear and Greed Index has also noticed a significant jump since BlackRock submitted its filing for spot Bitcoin ETF.
On June 15th, the index fell to 41, signaling that the market sentiment is nearing the "Fear" zone. However, on July 4th, the index jumped to 64, showing greedy market sentiment.
As Bitcoin continues to reach new heights in 2023, it has become a central focus for institutional investors. These shifts in institutional investment behavior amidst an increasingly volatile crypto market reflect a growing acceptance and reliance on the established cryptocurrencies, Bitcoin and Ethereum, as key financial assets.
