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March 27, 2023

Institutional Capital Pours Into Bitcoin, Solana, XRP and More at Highest Rate Since July 2022

By Daily Hodl Staff

Digital assets manager CoinShares says institutional crypto investment products finally ended their six consecutive weeks of outflows last week in a big way.

In its latest Digital Asset Fund Flows Weekly Report, CoinShares finds that institutional crypto investment products saw the highest inflows in over eight months.

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“Digital asset investment products saw inflows totaling US$160m, the largest since July 2022. A marked turnaround following 6 weeks of outflows that totaled US$408m. While the inflows came relatively late compared to the broader crypto market, we believe it is due to increasing fears amongst investors for stability in the traditional finance sector.”

Source: CoinShares

Bitcoin (BTC) products enjoyed nearly $130 million of inflows last week. However, short BTC products, which aim to profit off of Bitcoin going down in price, also took in $31 million.

“Bitcoin was the primary beneficiary, seeing inflows of US $128m, and expressed recently by some of our clients as a safe haven for the first time. Although not all share this view as short-bitcoin also saw inflows of US $31m, remaining the investment product with the most inflows this year so far, but not the best performing from a price perspective.”

Ethereum (ETH) products lost $5.2 million last week, marking ETH’s third consecutive week of outflows.

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“We believe investor jitters around the Shanghai upgrade (expected 12th April) are the most likely reason.”

Solana (SOL), Polygon (MATIC) and XRP products enjoyed inflows to the tune of US$4.8m, US$1.9m and US$1.2m, respectively.

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