Investors Continue Buying Bitcoin, Latest Fund Flows Report Shows – Here’s Why BTC Could Dominate Institutional Crypto Demand
One week after digital asset investment products saw their largest weekly inflow since July 2022 of $160 million, the pace of inflows has all but come to a halt, according to the latest Digital Asset Fund Flows report released on a weekly basis by CoinShares.
According to the crypto data analytics firm, “digital asset investment products saw inflows totaling a lackluster US$2.5m, with trading volumes in investment products falling by 33% compared to the prior week”.
“This was reflected in the broader bitcoin market where trading volumes on trusted exchanges fell by 61%, with both data points suggesting much less participation in the crypto market compared to the prior week,” CoinShares continued.
Indeed, according to data presented by The Block, the seven-day moving average of volumes was around $22.5 billion as of Monday, down from around $46 billion in mid-March.
Lower volumes come at a time when Bitcoin has been going sideways in the $28,000 area now for some time, while other cryptocurrencies have also been subject to rangebound conditions.
Looking under the hood, sentiment is actually more positive than might be assumed for Bitcoin.
The world’s largest cryptocurrency by market capitalization saw $8.8 million in inflows, while short Bitcoin investment products saw outflows of $2.5 million.
Price appreciation in Bitcoin has left the dollar value of total assets under management “at their highest since the collapse of 3 Arrows Capital in June 2022 at US$23.5bn,” CoinShares noted.
Ethereum and multi-asset products saw a combined outflow of $5.8 million, while smaller coins like Litecoin, Tron, Solana, XRP and Polygon all saw modest small inflows.
According to CoinShares, “inflows into short-Ethereum (US$0.5m) suggest investors
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