- Inflows on Bitcoin products surged to the second-largest level last week
- More than $400 million flowed into Bitcoin, while billions left Gold in the same period.
A recent market report from CoinShares informed that a substantial amount of funds flowed into Bitcoin products and funds in the past week. Within the same period, there was a significant outflow in gold-related investment products. The question of whether investors are turning to cryptocurrency remains unknown. However, it’s worth noting that the yearly inflows in gold products are still higher.
Weekly inflow in Bitcoin products
As reported by CoinShares, about $429 million from institutional investors flowed into Bitcoin products and funds within the past seven days, accounting for the second-highest inflow in a week. The highest record came three weeks ago, at $468 million when the cryptocurrency surged tremendously to place most of the addresses in a state of profit. During the time of writing, the leading digital currency is trading at $19,181 on Coinmarketcap.
Breaking down the weekly inflow, CoinShares reported that Grayscale Investments alone gained $336.3 million from institutional investors on its Bitcoin Trust fund. The development raised the company’s asset under management (AUM) to over $12.4 billion. Since this year, the company has reportedly gained $4.3 billion. Meanwhile, the AUM in the industry has grown from as low as $2.57 billion last year to $15 billion since this year.
The development indicates a strong and growing level of interest in Bitcoin among institutions, according to CoinShares’ James Butterfill, who added that “we are only on the cusp of institutional adoption.”
Weekly outflows in Gold plummet
While the cryptocurrency gained more inflows in the past week, Gold has been seeing massive outflows worth $9.2 billion for a period of one month. Within this period, Bitcoin products gained about $1.4 billion. However, it’s still worth noting that the yearly inflow in Gold is still higher ($45.7 billion) compared to the cryptocurrency.