Recent Trends in Institutional Investments
CoinShares has revealed some eye-popping data showing that institutional investments in cryptocurrencies have hit a three-month high, recovering dramatically from last week’s $47 million in losses. That’s right, this isn’t your grandma’s crypto market anymore; institutional investors are back in the game, and how!
Digital Asset Fund Flows Report Highlights
The latest Digital Asset Fund Flows Weekly Report indicates that total inflows for digital asset investment products reached a staggering $193 million, a figure we haven’t seen since early December 2021. Talk about a turnaround!
Bitcoin Takes the Lead
A whopping 50% of these inflows were directed towards Bitcoin (BTC), amounting to around $98 million. Who said Bitcoin was on the decline? Meanwhile, Solana (SOL) is impressively trailing with $87 million in inflows, marking its largest single week of inflows ever recorded. This means SOL is now making a case for being the big kid on the block, holding 36% of institutional assets after Ether (ETH).
The European Influence
Europe is leading the charge here. A remarkable 76%, or about $147 million, of the total inflows came from European firms, likely invigorated by the news that a bill aimed at banning proof-of-work (PoW) mining tanked. Seems like the European crypto scene isn’t going anywhere, anytime soon.
A Comparative Analysis
The situation is in stark contrast to the previous week’s drama, where North American firms withdrew nearly $49.4 million, browbeaten by fears of stifling regulations. It appears that while one region was pulling back, another was stepping onto the gas pedal!
Price Surge Correlation
It’s fascinating to note that the sharp increase in institutional cash infusions coincided with a price resurgence, as Bitcoin spiked to over $48,500 and Ether broke past $3,300. Maybe the market is finally getting its mojo back?
Industry Insights from Leaders
During the Blockchain Africa Conference 2022, industry veterans from Nexo and Amber Group discussed the ‘exponential‘ growth of institutional investments in cryptos. Kalin Metodiev, co-founder and managing partner at Nexo, pointed out that while institutional onboarding is on the rise, many firms still find cryptocurrencies ‘way too volatile.’ But hey, who doesn’t love a rollercoaster?
