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Bitcoin remains ‘primary focus’ for investors amid year highs: CoinShares

July 4, 2023 Coin Telegraph

blackrock

Bitcoin investment products have experienced $310.6 million in inflows over the last two weeks.

Bitcoin (BTC) has been the “primary focus” for institutional investors over the last two weeks, according to Coinshares, as the cryptocurrency continues to hit new prihighs for 2023.

In a July 3 report from CoinShares’ Head of Research James Butterfill, the analyst noted that Bitcoin-related products saw $310.6 million of inflows over the last two weeks, representing the vast majority of crypto product inflows.

“Bitcoin remained the primary focus of investors [...] with the last 2 weeks inflows representing 98% of all digital asset flows,” said Butterfill.

*Bitcoin weekly inflows. Source: CoinShares*

The last two weeks of inflows are a reversal from the previous nine consecutive weeks of outflows. Short Bitcoin products also experienced a minor outflow of $0.9 million over the last week.

It’s the second time this year that Bitcoin products have accounted for 98% of inflows into cryptocurrency investment products, and comes amid a surge in Bitcoin’s price and dominance.

*Bitcoin accounted for 98% of digital asset investment product inflows over the last fortnight. Source: CoinShares.*

Much of this surge has been pinned on BlackRock’s June 15 spot Bitcoin ETF application, followed by similar filings from the likes of Fidelity, Invesco, Wisdom Tree and Valkyrie.

Since the filing, the price of Bitcoin has increased 25.2% to $31,131 at the time of writing. Bitcoin's dominance — which is a measure of its market cap relative to the total market cap of all cryptocurrencies — has risen to 51.46%, according to data.

Bitcoin Fear and Greed Index is 64 — Greed
Current price: $31,158 pic.twitter.com/Tl8vVQp9GA
— Bitcoin Fear and Greed Index (@BitcoinFear) July 4, 2023

Meanwhile, Ethereum investment products inflows came in at $2.7 million last week, the second week of inflows that have reversed a lengthy outflow trend.

Speaking to Cointelegraph on June 26, Fireblocks CEO Michael Shaulov said there has been a “fair amount of interest” from institutional investors in core assets such as Bitcoin and Ethereum, but less so in alternate cryptocurrencies.

“The narrative around Ethereum is pretty much the understanding that future ecosystems of tokenizeation are likely to be EVM-based. And if they’re EVM based, then Ethereum is going to play out as utility.”

Shaulov said the narrative around Bitcoin has been less specific, but notes that most investors see the need to hold the cryptocurrency.

Magazine: Hall of Flame: William Clemente III tips Bitcoin will hit six figures toward end of 2024

FTX crisis leads to record inflows into short-investment products

November 22, 2022 Coin Telegraph

AUM

The aftermath of FTX’s collapse has soured crypto investor sentiment with "record” inflows into short-investment products last week, said CoinShares.

Institutional investors have responded to the negative sentiment caused by FTX’s collapse, with record institutional inflows into crypto-focused short-investment products.

According to CoinShares’ chief strategy officer James Butterfill, 75% of the total inflows by institutional crypto investors for the week ending Nov. 18 were placed in short investment products — essentially a bet that crypto prices will decline.

Butterfill said the takeup of short positions by investors is likely “a direct result of the ongoing fallout from the FTX collapse,” while the total assets under management (AUM) for institutional investors is now at $22 billion — the lowest in two years.

Over the week, $14 million was poured into short-ETH investment products. CoinShares said it was “the largest weekly inflow on record.”

CoinShares cited “renewed uncertainty” over Ethereum’s Shanghai upgrade slated for Sep. 2023 and mentioned that the sizeable amount of ETH held by the FTX exploiter as possible reasons for the negative sentiment.

Inflows into short investment products for Bitcoin (BTC) hit $18.4 million. Bitcoin short products were reported to have an AUM of $173 million coming close to the $186 million high.

Investors are also seemingly dropping altcoins with Solana (SOL), XRP (XRP), BNB (BNB), and Polygon (MATIC) product outflows totaling $6 million.

The newly reported inflows are a slight change from the week prior which saw the largest inflows in 14 weeks to crypto products totaling $42 million, although short Bitcoin products already started to see inflows of $12.6 million and blockchain equity products recorded the largest weekly outflow since May 2022.

Meanwhile, the ripple effect of investor distrust for centralized exchanges is taking hold in the traditional finance market with Coinbase posting an all-time low share price on Nov. 21.

The crypto exchange’s share price dropped 8.9% on the day, slipping to under $41 according to Google Finance. It has now slightly recovered to around $41.20 at the time of writing but continued to trade at a slight 0.19% negative after hours.

Coinbase’s stock price is down almost 88% since it went public on Apr. 16, 2021.

investment products