Mon, 12/02/2024 – 16:25
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The crypto ecosystem witnessed a massive inflow of funds from Institutional investors in the past week, underscoring a robust embrace, as showcased by data from CoinShares. In its weekly report, CoinShares pegged the overall inflow into the crypto ecosystem at $1.1 billion pushing its year-to-date (YTD) flow to $2.7 billion.
The impressive showing on the crypto market in the previous week marks one of the most ambitious for the market thus far this year, and the surge in capital inflows pushed the Assets Under Management (AUM) for crypto firms to $59 billion, the highest thus far since early 2022.
Per the CoinShares data, the spot Bitcoin ETF product accounted for the bulk of the inflows recorded, with the sum totaling $1.1 billion. The firm highlighted that BlackRock’s iShares Bitcoin Trust (iBIT) recorded an inflow of $693.6 million while Fidelity Investment’s FBTC raked in $522.6 million.
While other spot Bitcoin ETF issuers showed activity, the next significant transaction came from Grayscale Investment’s GBTC, which dragged the assets back with its $414.8 million outflow over the past week. The Ark 21Shares product also added a notable $23.5 million surge as it became the third fund to enter the $1 billion AUM club.
Bitcoin, Ethereum and Cardano showing
While the focus for the week was on Bitcoin, other top altcoins also contributed to the impressive inflow from institutional investors. Per CoinShares data, Ethereum (ETH) recorded a total of $16.5 million, while Cardano (ADA) managed to rake in $6.1 million.
The contributions from other altcoins like Solana (SOL), XRP and Tron (TRX) were significantly negligible compared to the bullish figures raked in.
The broader market has traded in a weird range over the past week, with the Bitcoin price now inching close to the $50,000 price mark. Should the current institutional accumulation trend continue, brighter days might be ahead for the top coin.