Tidal Wave of Institutional Capital Re-Enters Crypto Markets As Sentiment Improves: CoinShares

Digital assets manager CoinShares says institutional investors are flooding the crypto markets with improved sentiment.

In its latest Digital Asset Fund Flows Weekly Report, CoinShares finds that institutional investors flooded the markets with the highest level of inflows of 2023 following news of BlackRock submitting a Bitcoin (BTC) exchange-traded fund (ETF) application to the U.S. Securities and Exchange Commission (SEC).

“Digital asset investment products saw the largest single weekly inflows since July 2022, totaling US $199 million, correcting almost half of the prior 9 consecutive weeks of outflows. While ETP trading volumes were 170% the average this year, totaling US$2.5 billion for the week.

We believe this renewed positive sentiment is due to recent announcements from high-profile ETP issuers that have filed for physically backed ETFs with the US Securities & Exchange Commission. Total assets under management (AuM) are now at US $37 billion, their highest since before the collapse of 3 Arrows Capital.”

In step with its share of the market, BTC products took the brunt of the inflows with $188 million. Meanwhile, short-BTC products saw outflows for the ninth week in a row.

Ethereum (ETH) and multi-asset exchange-traded products (ETPs) also saw a big jump, receiving inflows of $7.8 and $8.1 million, respectively.

Altcoins XRP and Solana (SOL) saw minor inflows of $0.24 and $0.17 million last week as well.

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