Bitcoin Investment Products Witness $310.6 Million Inflows, Dominating Institutional Focus: CoinShares Report

Bitcoin investment products have witnessed a substantial influx of $310.6 million in the past fortnight, making it the primary attraction for institutional investors. CoinShares’ head of research, James Butterfill, highlighted in a report on July 3 that Bitcoin-related products accounted for the majority of crypto product inflows, representing an overwhelming 98% of digital asset flows during the aforementioned period.

This surge in inflows marks a reversal from the previous nine weeks of consecutive outflows. Additionally, there was a minor outflow of $0.9 million in short Bitcoin products in the past week.

This year, Bitcoin products have dominated inflows into cryptocurrency investment products twice, constituting 98% of the total inflows. This development coincides with the remarkable surge in Bitcoin’s price and market dominance.

The spike in Bitcoin’s value and dominance can largely be attributed to the June 15 spot Bitcoin ETF application by BlackRock, which was subsequently followed by similar filings from Fidelity, Invesco, Wisdom Tree, and Valkyrie. Since these filings, the price of Bitcoin has surged by 25.2% to reach $31,131 at the time of writing. Bitcoin’s dominance, measuring its market cap relative to the total market cap of all cryptocurrencies, currently stands at 51.46%, as per data.

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Conversely, Ethereum investment products observed inflows of $2.7 million in the previous week, marking the second consecutive week of inflows after a prolonged outflow trend.

Michael Shaulov, the CEO of Fireblocks, noted significant interest from institutional investors in core assets like Bitcoin and Ether (ETH), whereas the interest in alternative cryptocurrencies remained relatively low. Shaulov emphasized Ethereum’s future role in tokenization ecosystems, as the Ethereum Virtual Machine (EVM) is expected to play a pivotal utility in these ecosystems. Meanwhile, Bitcoin’s narrative for investors is less specific, but most acknowledge the necessity of holding the cryptocurrency.