Bitcoin Funds Continue to Dominate Institutional Inflows

Institutional investors are only interested in Bitcoin right now as it continues to lead markets in recovery. Large crypto funds have seen another week of major inflows, and they’re all dominated by BTC.

On July 3, institutional crypto fund manager CoinShares released its weekly fund flows report. It has been another bullish week for professional investors who are loading up on Bitcoin-related funds and products.

Bitcoin is 98% of Institutional Fund Flows

Crypto asset investment products saw a second week of inflows totaling $124.7 million, reported CoinShares.

This brings the past fortnight’s total to $334 million, reversing a nine-week in-a-row trend of outflows.  

Once again, Bitcoin dominated crypto fund inflows with $123 million. Furthermore, BTC represented 98% of all digital asset flows over the last two weeks.

It noted that for the tenth week in a row, short BTC investment products continued to see outflows.

CoinShares also commented on the impact of recent market momentum on assets under management.

“Recent price appreciation saw AuM rise to US$37bn during the week, the highest point since early June 2022 and matching the average AuM for 2022.”

Furthermore, trading activity remained high at $2.3 billion for the week. This is above the year-to-date average of $1.5 billion per week.

There was little love for Ethereum-based products, which only saw inflows of around $2.7 million for the week. Multi-asset funds saw outflows of $1.8 million, and altcoin-based funds were mostly flat.

Geographically, Germany was responsible for the largest share of inflows, with $64.8 million. Canadian investors were also bullish with $34.7 million inflows, but Americans remained wary of the asset class with $22.7 million or just 18% of the total.

U.S. financial regulators’ ongoing crackdown on the crypto industry is creating a capital flight and more bullishness overseas.

Crypto Market Outlook

Bitcoin spot prices are also performing well, with the asset hitting a new 2023 high of $31,384 in early trading on July 4.

The asset gained 1.6% on the day and was trading around $31,253 at the time of writing. However, this level is proving to be heavy resistance, having been tapped and rejected four times over the past fortnight.

There has been little movement in the rest of the crypto market over the past 24 hours. Ethereum remains flat at $1,956 but has made almost 5% over the past week.