Institutional investors have demonstrated a strong focus on Bitcoin (BTC) in recent weeks, as the cryptocurrency continues to surge and reach new price highs for the year 2023. According to a report by CoinShares’ Head of Research, James Butterfill, Bitcoin-related products attracted $310.6 million in inflows over the past two weeks, representing the majority of cryptocurrency product inflows.
According to Coinshares, these recent inflows mark a notable shift from the previous nine consecutive weeks of outflows, highlighting a renewed interest in Bitcoin among institutional investors. The Coinshares’ report indicates that the inflows during the last two weeks accounted for an impressive 98% of all digital asset flows, emphasizing the overwhelming focus on Bitcoin.
This is the second time this year that Bitcoin products have represented 98% of inflows into cryptocurrency investment products, coinciding with a surge in Bitcoin’s price and market dominance. The catalyst for this upward momentum can be attributed to BlackRock’s application for a spot Bitcoin exchange-traded fund (ETF) on June 15, followed by similar filings from prominent firms such as Fidelity, Invesco, Wisdom Tree, and Valkyrie.
Since the filing, Coinshares noted that the price of Bitcoin has experienced a significant increase of 25.2%, reaching $31,131 at the time of writing. Furthermore, Bitcoin’s dominance, which measures its market capitalization about the total market cap of all cryptocurrencies, has risen to 51.46% according to available data. While Bitcoin has garnered significant attention, inflows into Ethereum investment products have also experienced a positive trend. Last week, Ethereum saw inflows of $2.7 million, marking the second consecutive week of inflows after a prolonged period of outflows.
Ethereum ranks up in purchase
Institutional investors have shown a considerable level of interest in core assets such as Bitcoin and Ethereum. However, there appears to be less enthusiasm for alternative cryptocurrencies. According to Michael Shaulov, the CEO of Fireblocks, institutional investors view Ethereum as a crucial player in future ecosystems of tokenization due to its status as an Ethereum Virtual Machine (EVM)-based platform. The consensus is that Ethereum’s utility is likely to be pivotal in the upcoming landscape of tokenized assets.
On the other hand, the narrative surrounding Bitcoin’s appeal to institutional investors is less specific but widely acknowledged. Many investors recognize the necessity of holding Bitcoin as part of their investment strategy, considering its position as the pioneering and dominant cryptocurrency in the market. The recent shift in institutional investor sentiment towards Bitcoin reflects a growing recognition of its value and potential. As institutional interest in cryptocurrencies continues to evolve, Bitcoin remains at the forefront as a preferred choice for investors seeking exposure to the digital asset class.
Bitcoin has emerged as the primary focus for institutional investors in recent weeks, as evidenced by the substantial inflows into Bitcoin-related products. This surge in interest comes as Bitcoin reaches new price highs and continues to dominate the cryptocurrency market. While Ethereum has also witnessed a positive trend in investment product inflows, the majority of institutional attention remains centered on Bitcoin. As the cryptocurrency landscape evolves, Bitcoin’s significance as a core asset for institutional portfolios continues to solidify.
