Digital asset investment products experienced positive inflows recently, with a focus on Bitcoin (BTC) funds, indicating a more careful strategy by institutional investors towards allocating funds to cryptocurrencies.
In the week ending June 4, Bitcoin investment products received a total of $126 million in inflows, as per the latest report on fund flows from CoinShares. Year-to-date, Bitcoin investment funds have witnessed an addition of $506 million in net inflows.
Investors seem to be favoring Bitcoin over Ether (ETH) and other alternative coins. Ether funds recorded outflows of $32 million, marking the ninth straight week of declines. Outflows from Ether investment products have reached $357.4 million so far this year.
On the other hand, investments in multi-asset crypto funds increased by $4.3 million last week, bringing the total for the year to $201.3 million.
Grayscale stands as the largest digital asset manager, managing over $27 billion. Almost all of Grayscale’s total assets are dedicated to the Grayscale Bitcoin Trust, known as GBTC.
Related: BTC price closes in on $32K as analyst predicts a ‘dull’ summer for Bitcoin
Unable to break free from the influence of traditional financial markets, crypto assets have been on a downward trend for much of 2022. Bitcoin prices endured nine consecutive weekly declines, the longest streak in history, as investor sentiment hit a phase of “extreme fear” on the Bitcoin Fear & Greed Index.
Bitcoin narrowly avoided a tenth consecutive down week by closing at $29,900 on Sunday, just $450 higher than the previous week.
However, there are positive indicators that institutional investors are taking advantage of the dip. In addition to the CoinShares report, a Canadian spot Bitcoin exchange-traded fund operated by Purpose Investments acquired thousands of BTC last month. By May 13, the Purpose Bitcoin ETF had reached its highest-ever Bitcoin holdings at 41,600 BTC.
Massive inflows for the Canadian #Bitcoin Purpose spot ETF. 6.9k $BTC have been added to the fund yesterday. By far the biggest inflow we have seen (2nd largest was 2.9k BTC). AUM is at a new all-time high of 41.6k BTC.
Someone bought that cheap bitcoin. pic.twitter.com/zDkhcjlP1V
— Jan Wüstenfeld (@JanWues) May 13, 2022
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