Bitcoin And Ethereum See Return Of Institutional Fund Inflows

Institutional sentiment appears to be shifting back to being positive toward crypto as crypto investment products saw inflows of US$63 million for the first time in five weeks, according to a report by CoinShares, Europe’s largest digital asset investment firm. Previously, there were four straight weeks of crypto fund outflows.

Fast facts:

  • “For the first time in 9 weeks, inflows were seen across all individual digital assets implying a turnaround in sentiment amongst investors,” wrote James Butterfill, an investment strategist for CoinShares.
  • Bitcoin took the lead, with total inflows of US$38.9 million.
  • “While there were inflows last week, Bitcoin investment product trading turnover was the lowest since November 2020,” Butterfill wrote. “A similar observation was seen more broadly across the whole of the Bitcoin ecosystem with volumes down 38% relative to the average for 2021.”
  • Ethereum, the second-largest cryptocurrency by market value, broke its three-week streak of outflows with inflows of US$18 million.
  • Altcoins Polkadot, XRP and Cardano saw inflows of US$2.1 million, US$1.2 million and US$0.7 million respectively.
  • Earlier this month, Grayscale, the world’s largest institutional digital asset manager with US$29.8 billion in assets under management as at July 3, announced that it was adding Cardano (ADA) to its Grayscale Digital Large Cap Fund as part of a quarterly review. The components in the fund as of July 1 are as follows: 67.47% Bitcoin (BTC), 25.39% Ethereum (ETH), 4.26% Cardano (ADA), 1.03% Bitcoin Cash (BCH), 0.99% Litecoin (LTC) and 0.86% Chainlink (LINK). Cardano is in the midst of its three-phase Alonzo upgrade, which will bring smart-contract functionality to the blockchain.