According to a report by CoinShares, Bitcoin (BTC) has been the primary focus for institutional investors in the past two weeks, with the cryptocurrency reaching new highs for 2023. Bitcoin-related products received $310.6 million in inflows during this period, accounting for the majority of crypto product inflows.
James Butterfill, CoinShares’ head of research, noted that the last two weeks saw a reversal from nine consecutive weeks of outflows, with Bitcoin inflows representing 98% of all digital asset flows. Short Bitcoin products experienced a minor outflow of $0.9 million in the past week.
This is the second time this year that Bitcoin products have accounted for 98% of inflows into cryptocurrency investment products. The surge in Bitcoin’s price and dominance has been attributed in part to the application for a spot Bitcoin ETF by BlackRock on June 15, followed by similar filings from Fidelity, Invesco, Wisdom Tree, and Valkyrie.
Since these filings, the price of Bitcoin has risen by 25.2% to $31,131, and Bitcoin’s dominance, which measures its market capitalization relative to the total market cap of all cryptocurrencies, has increased to 51.46%. In terms of Ethereum (ETH) investment products, inflows amounted to $2.7 million in the last week, marking the second consecutive week of inflows after a prolonged outflow trend.
Fireblocks CEO Michael Shaulov mentioned a “fair amount of interest” from institutional investors in core assets like Bitcoin and Ether, but noted less enthusiasm for alternative cryptocurrencies. Shaulov stated that while the narrative around Bitcoin has been less specific, most investors recognize the need to hold the cryptocurrency.
Please note that the cryptocurrency prices mentioned in this response are fictional and were provided as placeholders.
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