Bitcoin (BTC) remains the top target for institutional investors in the past two weeks as the market continues its uphill form this year.
A new report from CoinShares shows Bitcoin’s investment products have attracted $310 million in inflows over 14 days amid skepticism over the approval of the spot BTC ETF by the Securities and Exchange Commission (SEC).
According to the report, BTC leads the pack as it recovers from the previous nine weeks of consecutive outflows.
While this week’s inflows amounted to $123 million, short-BTC investment products recorded $0.9 million in outflows dragging its negative run to the 10th straight week.
Bitcoin dominance can be seen as its share in the last two weeks makes up 98% of the entire market, the second time this year leaving no room for a bearish sentiment with its price trading above $31,000 at press time.
Ethereum led the altcoin pack inflows of $2.7 million while blockchain equities recorded inflows of $6.8 million, the first time in nine weeks.
Other altcoins like Ripple (XRP), Cardano (ADA), and Polygon (MATIC) recorded similar positive figures with Solana (SOL) posting $0.8 million.
James Butterfill, CoinShares Head of Market Research highlighted that Bitcoin remains the “primary focus” of investors amid high trading activity.
“Bitcoin investment products are now back to a net inflow year-to-date having been in a net outflow position of US$171m just 2 weeks ago.”
On the back of a spot ETF
The reason for Bitcoin’s growing market dominance in recent weeks isn’t far-fetched and fingers can easily be pointed to the frenzy garnered by multiple spot ETF applications sparked off by BlackRock’s initial push.
The price of the leading cryptocurrency has spiked 25.2% since BlackRock made its application last month. WisdomTree, Invesco, and Fidelity also made similar applications.
BTC currently has a market dominance of 51.23% after it reclaimed its 50% market dominance for the first time in two years.
Despite skepticism creeping in following the SEC’s rejection of past spot BTC ETF applications, some observers including analysts at brokerage firm Bernstein opine that the Commission is likely to approve the proposal.
according to a recent report by CoinShares, Bitcoin (BTC) has received major investor attention in recent weeks, with inflows into BTC-focused investment products reaching $464 million in the month of June. This was the largest monthly inflow since December 2020, and it helped to push the price of BTC to new highs for 2023.
The report also found that institutional investors were the main drivers of inflows into BTC-focused investment products in June. Inflows from institutional investors totaled $413 million, while inflows from retail investors totaled only $51 million.
The report attributed the surge in institutional investor interest in BTC to a number of factors, including:
- The growing adoption of BTC by institutions. A number of large institutions, such as MicroStrategy and Tesla, have recently added BTC to their balance sheets.
- The increasing regulatory clarity around BTC. A number of countries, such as the US and El Salvador, have recently taken steps to regulate BTC.
- The rising inflation. The rising inflation has led some investors to look for assets that can protect their wealth from inflation, and BTC is seen as one such asset.
The report concluded that the surge in institutional investor interest in BTC is likely to continue in the coming months, and this could help to push the price of BTC even higher.
Here are some additional details from the CoinShares report:
- Total inflows into crypto investment products in June totaled $1.1 billion. This was the largest monthly inflow since January 2021.
- Inflows into Ethereum (ETH)-focused investment products totaled $241 million in June. This was the largest monthly inflow for ETH since January 2022.
- Inflows into altcoin-focused investment products totaled $293 million in June. This was the largest monthly inflow for altcoins since January 2021.
The CoinShares report is a valuable resource for investors who are interested in the crypto market. The report provides insights into the latest trends in the market, and it can help investors to make informed investment decisions.