Institutional bulls back Bitcoin after weeks of altcoin accumulation

October 5, 2021 Coin Telegraph

AUM

Institutional crypto appetites have shifted away from altcoin back to Bitcoin, with BTC investment products leading the inflows for digital asset products for the second week in a row.

Institutional investors are pivoting back to digital gold with Bitcoin (BTC) investment products posting a third consecutive week of inflows.

According to CoinShares’ latest Digital Asset Fund Flows Weekly report, BTC investment products generated $68.7 million worth of inflows between Sept. 27 and Oct. 1, representing a 36% increase in exposure week-over-week.

While products tracking BTC have now dominated inflows to digital asset products for two weeks in a row, the bullish turn comes fresh off a record streak of outflows that persisted for eight consecutive weeks until early September.

Total inflows for digital investment products were $90 million for the week, marking the seventh consecutive week of inflows as institutional investors continue to increase exposure to digital assets.

Institutional investors also snapped up a significant amount of Ethereum (ETH) investment products, with inflows totaling $20.2 million. BTC and ETH products gained roughly 7.4% and 3.2% for the week respectively.

There was also a mixed appetite for altcoins last week. Products tracking Cardano (ADA), and Solana (SOL) posting inflows of $1.1 million and $700,000 respectively, while Polkadot (DOT) and Binance Coin (BNB) fund shed $800,000 each. Multi-asset funds also saw minimal inflows of $1.9 million.

Institutional demand for Solana appears to have bottomed out, with inflows to products tracking SOL crashing by 98% since posting highs of $38.9 million five weeks.

Despite the markets recovering from July’s violent pull-back, CoinShares highlighted that last week’s trade volume of $2.4 billion remains low compared to the $8.4 billion worth of institutional crypto products traded weekly during the height of 2021’s bull cycle in mid-May.

According to CoinShares’ estimates, institutional asset managers currently represent combined assets under management (AUM) worth $57.1 billion combined — a weekly increase of 8.5%.

Grayscale continues to dominate the sector, representing $41.1 billion or 71% of the sector’s total AUM. CoinShares XBT and Purpose funds rank in second and third with $2.2 billion and $2.1 billion worth of AUM respectively.

Institutions cautious as crypto products post weakest volume since October

July 13, 2021 Coin Telegraph

Binance

Sophisticated investors appear to be spreading their risk across the crypto sector, with multi-asset products beating out BTC and ETH by inflows.

Institutional investors are yet to regain confidence in the crypto markets, with weekly crypto investment product volume dropping to its lowest level since October 2020.

According to CoinShares’ July 12 Digital Asset Fund Flows Weekly report, $1.58 billion worth of digital asset products changed hands between July 5 and July 9.

Crypto investment products also saw outflows of $4 million for the week, with roughly $7 million exiting Bitcoin (BTC)-tracking products. However, European Bitcoin products saw inflows overall, suggesting some investors believe the worst of 2021’s bear market may be behind us.

Ethereum (ETH) products also saw minor inflows of $800,000 for the week.

*Capital flows for institutional crypto products: CoinShares*

CoinShares’ latest data suggests institutional investors are sitting on the fence after the previous week’s brief bullish recovery that saw $63 million injected into BTC and ETH products combined.

Institutional Bitcoin products have now posted outflows for 8 of the last 9 weeks. Sophisticated investors also offloaded Ether exposure last month, with outflows totaling $64.3 million since the week ending on June 6.

Despite investors appearing cautious on BTC and ETH, CoinShares notes that multi-asset products have continued to see inflows as institutions spread their risk across the sector, posting inflows of $1.2 million.

Multi-asset products have seen year-to-date (YTD) inflows of $362 million, and now represent 16.5% of assets under management (AUM) of multi-asset funds. CoinShares wrote:

“While the inflows remain relatively small in comparison to Bitcoin and Ethereum, the data does imply that investors are increasingly looking to diversify their digital asset holdings.”

Investors also showed interest in Cardano, with inflows totaling $600,00 last week. Despite the recent regulatory scrutiny aimed at Binance, Binance Coin products saw inflows of $400,000.

Record $141M outflow from Bitcoin products signals institutions are bearish on BTC: CoinShares

June 8, 2021 Coin Telegraph

Bitcoin

Institutional investors withdrew a record $141 million from Bitcoin investment products this past week.

The latest report from analytics firm CoinShares shows that outflows from institutional BTC investment products continue to surge.

According to CoinShares’ June 7 Digital Asset Fund Flows Weekly report, institutional investors are continuing to reduce Bitcoin exposure, with BTC investment products seeing a record outflow of $141 million this past week.

*Capital flows for crypto investment products: CoinShares*

The data follows heavy institutional selling amid May’s dramatic crypto market meltdown, with institutions having withdrawn nearly $100 million from crypto products between May 10 and May 16, before outflows briefly slowed towards the end of last month.

Trade volume for BTC products is also sharply declining, with the first week of June seeing a 62% drop in trade activity compared to May’s weekly average.

Despite describing institutional sentiment towards BTC as having turned bearish since early May, CoinShares highlighted the outflows represent less than one-tenth of 2021’s inflows:

“The outflows represent 8.3% of the net inflows seen this year and remain minimal on relative terms to the outflows seen in early 2018.”

Since the start of 2021, more than $4.2 billion in capital has flowed into Bitcoin products, with BTC current representing 65.9% of all capital locked in crypto investment products.

The declining institutional demand for BTC has again coincided with increasing institutional appetites for Ethereum — with Ether representing more than 26.8% of the combined assets under management (AUM) currently locked in crypto investment products after receiving inflows of $33 million this past week.

CoinShares also noted investors are seeking exposure to Ripple (XRP) and Cardano (ADA) investment products are attracting interest, with XRP’s inflows totaling $7 million — its largest weekly inflow since April — and ADA’s inflows tagging $4.5 million.

According to data from CoinGecko, Ether continues to have usurped Bitcoin’s status as the most-traded non-stablecoin crypto asset in the broader crypto markets.

Roughly $37.4 billion worth of Ether traded hands over the past 24 hours — second only to stablecoin Tether’s $75.5 billion in daily trade. By comparison, Bitcoin has processed $32.9 billion in 24-hour trade volume.

CoinShares weekly report