A new report from crypto fund provider CoinShares indicates that some institutional investors have made a profit during the recent BTC merger.
CoinShares’ weekly digital capital inflows report points to $ 85 million in institutional cryptocurrency outflows over the past week, arguing that the data indicates “some investors continue to take profits after [BTC] prices soar.”
The report indicated that the rise in the US dollar (trade weighted) with reference to the US dollar index is “generally inversely proportional to bitcoin prices” and may explain why some investors are making profits at current levels.
The company has also identified modest flows of Ethereum derivative investment products that are leaving the markets for $ 3 million.
Despite the surplus, institutional inflows remained robust, pouring $ 359 million into crypto investment products this week. Institutions appear to remain almost unilaterally focused on BTC, with Bitcoin products accounting for up to 1% of total capital inflows for week.
CoinShares notes that the flow of cryptocurrencies has returned to pre-Christmas levels after falling 97% in the three weeks after the holidays. Daily volumes are currently increasing more than 450% over the previous year.
Institutional products currently account for 6% of total Bitcoin, up from 14% at the beginning of the month.
There has been a lot of talk lately about the growing institutional appetite for cryptocurrencies, as major global corporations have recently flooded treasuries with bitcoin.
After placing over 11 million bitcoins to trade futures by 2020, the Chicago Mercantile Exchange announced last month that it plans to launch cash-settled Ethereum futures contracts in early February, pending regulatory approval.
On January 20, Ninepoint Partners released the final Bitcoin Trust prospectus, which was conditionally approved by the Toronto Stock Exchange.