According to a new report (1) from Coinshares, institutional investors have experienced a reawakening this year, as seen by their increased acceptance of investing in riskier assets such as Bitcoin (BTC).
According to Coinshares, crypto currency financial products received funds totaling $117 million, making this influx one of the greatest since July last year.
Coinshares markets itself as the largest investing and trading club specializing in digital assets in the European Union (EU). It was amongst the initial firms to pioneer crypto investment products, which let institutional investors acquire exposure to the realm of crypto currencies in a controlled and safe environment. These products help fund managers gain exposure to the field of crypto currencies.
According to the statistics provided by Coinshares, Bitcoin led the $117 million inflows recorded, with investments totaling $116 million. This indicates that virtual money is still the highest preferred among corporate purchasers.
The overall asset under management (AUM) has surpassed $28 billion, marking a new high point since November of the previous year. In particular, the AUM has increased by 43% compared to November.
Even if new money is coming into the crypto currency ecosystem, there is also a sizeable amount of money leaving the ecosystem. According to the data made public by Coinshares, the total amount of money taken out of multi-asset investments over the last week was $6.4 million. This suggests that investors are better connected with solutions that offer standalone investing ideas.
Bitcoin Remains the Dominant Crypto
The fact that Bitcoin accounted for more than 99 percent of the capital inflows over the last week proves that the maximalist narrative around Bitcoin is still active.
The leading form of virtual money is also the one that is seen as having the most liquidity among crypto currencies and stands the best prospect of becoming regulated by authorities all around the world.
Since the beginning of the year, crypto currency has had a solid run, leading the specific market trend in what appears to be a planned effort by market bulls to drive down a new bull run.
According to the statistics provided by tradingview.com, the positive trend in the marketplace has been disrupted since this article was written. Bitcoin is currently trading for $23,135 a 1.41% increase.
Even amid this downturn, Bitcoin remains a preference regarding the rate of gain compared to the period covering the whole year (YTD). Bitcoin's value has increased by 38.2% over the previous 30 days, an astounding growth jump driving it to conclude January with gains for the first time in years despite the market's general downward trend.
Bitcoin received several major positive factors, one of which was the news that Tesla Inc., an American company that manufactures electric vehicles, did not dispose of the remaining units of its shareholding in its most recent earnings report.
Suppose the corporation managed by Elon Musk had sold off the crypto currency. In that case, a panic message might have been injected into the market, which could have caused the crypto currency price to drop far sooner.