Institutional BTC Funds Finally See Returns, ETH Still Out of Favor

Institutional BTC Funds Finally See Returns, ETH Still Out of Favor

Bitcoin’s five-week streak of outflows has ended as nearly $14 million have flowed back to institutional funds.

The weekly Digital Asset Fund Flows report published by the crypto investment firm CoinShares on Monday states that Bitcoin’s institutional funds have finally seen some inflows. Ethereum, on the other hand, has experienced some of the biggest losses.

Based on the data, Ethereum’s persistent outflows appear to “[highlight] much of the recent bearishness amongst investors has been focussed on Ethereum rather than Bitcoin.”

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The net positive inflow of around $14 million is thanks to the Bitcoin investors buying the dip. This is the first time in five weeks that the institutional funds have not faced outflows.

According to the report, a large chunk of these inflows came in the second half of the week, “during a period of significant price weakness”. This was seen as a good buying opportunity given the price levels at the time.

Some gains were also recorded for 21Shares and ProShares, $10 million and $14.3 million, respectively. Ethereum experienced some of the most considerable losses, seeing $15.6 million in outflows.

The report also covered the inflows and outflows of altcoins, noting that “<...>Cardano, Polkadot and Solana saw inflows totalling US$1.5m, US$1.5m and US$1.4m respectively.”

Overall, the Digital Asset Fund Flows report noted that currently the total assets under management (AuM) make up roughly $51 billion – the lowest since early August 2021. This marks a 41% decrease from the peak in November 2021, when the AuM made up $86 billion. This decline was caused by the falling value of the underlying assets in the past few months.

Many traders were looking for entry points during the market bounce that took place over the last weekend, up until its current reclamation. According to Tradingview, Bitcoin plummeted to $33 thousand in late Monday but appears to be steadily recovering back to its prior price points of $36 thousand.

It is expected that the steady inflows could keep trickling back into Bitcoin’s institutional funds, if the spot market remains at a steady pace.

Camille V. - Crypto Analyst

by Camille V. - Crypto Analyst, BitDegree


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