Odaily Frontline | CoinShares: The weekly investment inflow of encryption funds exceeds 1.3 billion US dollars and hits a new high
This article comes fromCoinGape, original author: Bhushan Akolkar
Odaily Translator | Nian Yin Si Tang
With the recent drop in bitcoin prices and the overall correction in the crypto market, large players appear to be consolidating their positions. Crypto fund manager CoinShares told Reutersexpressexpress
, weekly investment inflows into crypto funds hit a record $1.31 billion last week.
Of this, nearly 97% of funds flowed into Bitcoin, while Ethereum, the world’s second-largest cryptocurrency, saw a net inflow of $34 million.
It's a positive development after weeks of outflows. This shows that investors' trust in Bitcoin and the crypto market is still intact, and they will take any opportunity presented by a market correction. But despite the increased buying, total assets under management across the industry had slipped below $30 billion as of Jan. 22.
A previous CoinShares report released on January 18 showed that some institutional investors have profited from the current round of Bitcoin decline. Over the past week, institutional crypto products have seen $85 million in outflows. Ethereum derivatives also saw a small outflow of about $3 million. At the same time, however, the report said institutional inflows remained strong, with $359 million flowing into crypto investment products in the past week, despite the profit-taking. Financial institutions still seem to be focused on Bitcoin.
CoinShares noted that crypto inflows fell 97% in the three weeks following the holidays and have now returned to pre-Christmas levels. Daily volume is currently up over 450% year-over-year.
Assets under management in the industry topped $34 billion on Jan. 8, implying a current decline of more than 10%. This decline due to a crypto market correction is notable. CoinShares investment strategist James Butterfill told Reuters:
Grayscale is undoubtedly the biggest winner in the crypto investment fund market, currently managing over $26 billion in assets. The Grayscale Bitcoin Trust (GBTC) has been continuously buying bitcoins, having purchased more than 41,000 bitcoins since January 14, 2010. Recently, grayscale has alsoannouncedannounced
Application information for some new altcoin trust products.
Later, Grayscale CEO Michael Sonnenshein responded in an interview that the establishment of the trust fund does not mean that Grayscale will launch these products. He added: "Grayscale is always looking for opportunities to provide products that meet investor needs. Sometimes Grayscale will also conduct pre-applications, but the application does not mean that the product will be launched to the market. When a new product can be used by users , Grayscale will make an announcement."
secondary title
"Ethereum will face some fundamental market structure changes"
That’s what CoinShares Chief Strategy Officer Meltem Demirors had to say in an interview with CNBC’s Squawk Box shortly after Ethereum hit a new all-time high on Monday, Jan. 25. Demirors believes that Bitcoin is the first choice for investment institutions because the liquidity of the Bitcoin market is 10 times that of the Ethereum market. However, speaking of Ethereum, she stated:
"We've seen tremendous growth in the Ethereum ecosystem, and when it comes to new applications, products and services being built, many of them are built on top of the Ethereum network."
She also added that CME’s ethereum futures, due to launch on Feb. 8, could be a potential game-changer, as cash-settled contracts will drive more institutional participation. As such, she added: “Ethereum is destined to undergo some fundamental market structure changes.”
