Bullish Return: Institutional Investors Pour $1.44 Billion Into Crypto In One Week

Scott Matherson

Last Updated: July 16, 2024 4:30 pm

3 mins read

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Crypto investment products have experienced another week of inflows to build upon inflows witnessed in the prior week. According to data from CoinShares, digital asset investment products recorded $1.44 billion worth of inflows last week, which is a further indication of the return of bullish momentum into the crypto industry. This brings the total inflow to $1.881 billion over a two-week period after three consecutive weeks of outflows. With last week’s numbers, the total value of inflows into crypto investment funds this year now stands at a record $17.8 billion.

Bullish Return Among Institutional Crypto Investors

The latest data shows that crypto investment products are starting to reflect the overall change in market sentiment. As noted by CoinShares’ latest weekly report, this change into bullish sentiment has allowed digital investment products to further surpass the $10.6 billion inflow received during the 2021 bull market.

Last week’s inflows amounted to $1.44 billion, which is the 5th largest weekly inflow on record. Unsurprisingly, Bitcoin received the lion’s share of the investments. As the world’s first and largest crypto asset, Bitcoin has always been the centre of attraction among other cryptocurrencies. The cryptocurrency has also been in the spotlight for the past few months since the launch of Spot Bitcoin ETFs. A return of bullish momentum allowed Bitcoin to receive $1.35 billion last week, which is also the fifth-largest weekly inflow on record for Bitcoin. Notably, this inflow came amidst concerns about selling pressure sparked by a selloff of over 45,000 BTC by the German State of Saxony.

On the other hand, short-Bitcoin products witnessed $8.6 million worth of outflows. Short-Bitcoin products are for investors who anticipate a decline in the price of Bitcoin. With this in mind, it can be deduced that the withdrawal of short positions is a manifestation of a diminishing bearish outlook among institutional investors.

Ethereum led the altcoin market with a net inflow of $72 million, allowing it to reverse its total net inflow this year from a negative $15 million at the beginning of the week to $57 million at the end of the week. Solana exchange-traded products followed suit with a $4.4 million net inflow, a 270% reduction from $16.3 million in the prior week. At the time of writing, Solana’s total inflow this year stands at $62 million.

Litecoin, XRP, and Cardano witnessed inflows of $1.2 million, $1.0 million, and $1.2 million, respectively. Multi-asset investment products also recorded $17.2 million in inflows.

ETPs are still one of the best ways for institutional investors to get exposure to cryptocurrencies like Bitcoin and Ethereum. Their use has been on the rise since the beginning of the year, especially in North America. In terms of geographical location, the United States had the most inflows with $1.274 billion, Switzerland with $57.5 million, Hong Kong with $54.6 million, and Canada with $23.2 million, among others.

According to CoinShares, the total assets under management (AuM) are now at $84.713 billion.

Crypto total market cap chart from Tradingview.com — Total market cap above $2.28 trillion | Source: Crypto Total Market Cap on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

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