Coinshares Records Biggest Bitcoin Dominated Capital Inflow Since July

UTC by Benjamin Godfrey · 3 min read
Coinshares Records Biggest Bitcoin Dominated Capital Inflow Since July
Photo: Depositphotos

According to the Coinshares data, of the $117 million inflows recorded, Bitcoin dominated with $116 million of investments, a sign that the digital currency is still the most favored among corporate buyers.

Institutional investors got an awakening this year with a renewed embrace of investments in risk assets like Bitcoin (BTC) per a new update from Coinshares. According to Coinshares, digital asset investment products recorded an inflow worth $117 million, one of the highest recorded thus far since July last year.

Coinshares brands itself as the largest digital asset investment and trading group in the European Union (EU). It is one of the first pioneers of crypto investment products that help institutional investors to gain exposure to the world of cryptocurrencies in a regulated and secure manner.

According to the Coinshares data, of the $117 million inflows recorded, Bitcoin dominated with $116 million of investments, a sign that the digital currency is still the most favored among corporate buyers. The total asset under management (AUM) now tops $28 billion, the highest recorded since November last year. The AUM is specifically up by 43% from November.

While the crypto ecosystem is recording capital injection, there is also a significant outflow of funds. Per the data released by Coinshares, total outflows in multi-assets investments for the past week came in at $6.4 million. This connotes that investors are more aligned with products with lone investment strategies.

Coinshares Data: Why Bitcoin Is King

That Bitcoin represented more than 98% of the capital inflows for the past week is an indication that the Bitcoin maximalist narrative still exists. The premier digital currency is considered the most liquid cryptocurrency, and one with a higher chance of being regulated by regulators around the world.

The cryptocurrency has had a good run since the start of the year, leading the defined market momentum in what looks like a targeted effort by market bulls to force down a new bull run. At the time of writing, the bullish trajectory in the market has been derailed and Bitcoin is 3.65% to $22,834.15 according to data from CoinMarketCap.

Amid this slump, Bitcoin is still a favorite in terms of rate of gain when compared to the Year-to-Date (YTD) period. Amid the sliding prices, Bitcoin is up 38.2% over the past 30 days, an impressive growth leap that is pushing it to end January in gains for the first time in years.

Bitcoin got a number of important positive fundamentals including the update that American electric vehicle maker, Tesla Inc (NASDAQ: TSLA) did not sell off the remaining units of its holdings in its last earnings report. Had the Elon Musk-led company sold off the coin, a panic signal might be introduced into the market that might have derailed the cryptocurrency’s price much earlier.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

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