In its “Weekly Digital Asset Fund Flows” report on January 30, digital asset investment and trading group CoinShares confirmed that $117 million was heading into cryptocurrencies in the last week of the month.
Institutions are ‘unsold’ in post-Ethereum merger
Bitcoin remains on the radar as an institutional investment opportunity.
As evidenced by the latest CoinShares data, it took just weeks of BTC price action to recoup previous losses to trigger a significant shift in investment habits — and not just in the US.
“Last week, it appears that the bears have changed their minds with $117 million in inflows, including $26 million from the United States,” CoinShares wrote in a Twitter thread accompanying the report.
“This is 3 times the amount from last week. Total AuM assets have risen to US$28 billion, up 43% from the November 2022 low.”
Germany was the surprise leader, responsible for 40% of the week’s tally, followed by Canada.
Although altcoins are rising in line with Bitcoin, institutions seem to be primarily interested in BTC when it comes to cash.
In the words of CoinShares, “the focus has been almost entirely on Bitcoin,” a fact not lost sight of market participants eyeing a potential shift in preferences away from the Ethereum-centric field of decentralized finance.
“This is proof that institutional funds are not being sold according to the Ethereum thesis,” the popular Pelag Capital Twitter account argued.
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The numbers also contrasted with testing times for some altcoins, with CoinShares choosing Bitcoin Cash
However, net inflows were witnessed.
He commented, “Multi-asset investment products saw outflows for the ninth consecutive week totaling $6.4 million, indicating that investors prefer specific investments.”
Weekly crypto asset flows chart. Source: CoinShares / Twitter
GBTC is sinking towards a new record discount
Meanwhile, after making a notable comeback of its own, Bitcoin’s largest institutional investment vehicle appears to be losing steam again.
Related: Bitcoin Sees a Golden Cross Last Two Months Before All-Time High
Grayscale Bitcoin Trust (GBTC) traded at a 43% discount to Bitcoin’s spot price on February 7, after recovering to 36.2% in mid-January.
As Cointelegraph continues to report, Grayscale is currently finding itself stuck in difficulties affecting parent company Digital Currency Group after FTX’s dissolution in November 2022.
However, GBTC was already struggling, as Grayscale tried to force US regulators to allow it to convert to the country’s first ETF with spot bitcoin.