Bitcoin (BTC) has been the “prime focus” of institutional investors over the past two weeks, according to Coinshares, as the cryptocurrency continues to hit new highs in 2023.
In a note published on July 3, CoinShares director of research James Butterfill said analysts famous Inflows into bitcoin-related products amounted to $310.6 million in the past two weeks, accounting for the vast majority of inflows into crypto products.
“Bitcoin remains the main focus for investors (…), with inflows accounting for 98% of all digital asset flows over the past two weeks,” Butterfill said.
Inflows over the past two weeks reversed the previous nine straight weeks of outflows. Last week, short bitcoin products also saw a small outflow of $900,000.
This is the second time this year that bitcoin products have accounted for 98% of inflows into cryptocurrency investment products, and it comes at a time when bitcoin’s price and dominance are surging.
The surge was largely attributable to BlackRock’s spot bitcoin ETF application on June 15, followed by similar filings from Fidelity, Invesco, Wisdom Tree and Valkyrie, among others.
Since the filing, the price of Bitcoin has risen 25.2% to $31,131 as of this writing. Bitcoin’s dominance — a measure of its market capitalization relative to the combined market capitalization of all cryptocurrencies — has risen to 51.46%, according to to the data.
Bitcoin Fear and Greed Index at 64 – Greed
Current Price: $31,158 pic.twitter.com/Tl8vVQp9GA– Bitcoin Fear and Greed Index (@BitcoinFear) July 4, 2023
Meanwhile, ethereum investment products saw inflows of $2.7 million last week, the second week in which inflows reversed a long-term trend of outflows.
related: Why Bitcoin ETF Approval Could Unleash $18B of Selling Pressure
In an interview with Cointelegraph on June 26, Fireblocks CEO Michael Shaulov said that institutional investors have shown “considerable interest” in core assets like bitcoin and ethereum, but less interest in alternative cryptocurrencies.
“The narrative around Ethereum is basically the understanding that future tokenized ecosystems are likely to be EVM-based. If they are EVM-based, then Ethereum will work.”
Schoroff said the narrative around bitcoin was less specific, but noted that most investors see a need to hold the cryptocurrency.
Magazine: Hall of Fire: William Clemente III Predicts Bitcoin to Hit Six Figures by End of 2024
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