Bitcoin-focused investment instruments have seen a hefty injection of $310.6 million in the past fortnight.
As per CoinShares’ insights, Bitcoin (BTC) has been the linchpin for institutional investors throughout these past two weeks, coinciding with the cryptocurrency reaching new highs for 2023.
CoinShares’ Head of Research, James Butterfill, pointed out in a July 3 report that there had been $310.6 million worth of inflows into Bitcoin-related instruments over the prior fortnight, encompassing a significant majority of crypto product inflows.
“Bitcoin continues to be the main point of interest for investors… the inflows over the last 2 weeks make up 98% of all flows into digital assets,” Butterfill highlighted.
Contrasting nine continuous weeks of outflows, the past fortnight has witnessed a shift towards inflows. Minor outflows of $0.9 million were noted from Short Bitcoin products over the past week.
The dominance of Bitcoin products in inflows — accounting for 98% — has been observed twice this year and is concurrent with a bullish trend in Bitcoin’s price and market share.
This upswing is largely attributed to BlackRock’s spot Bitcoin ETF application on June 15, succeeded by similar filings from Fidelity, Invesco, Wisdom Tree, and Valkyrie.
In the aftermath of these filings, Bitcoin’s price experienced a 25.2% uptick, standing at $31,131 as of the time of reporting. Bitcoin’s market dominance, gauging its market cap relative to the entire crypto market cap, has ascended to 51.46%, as per recent data.
On another note, Ethereum-focused investment instruments marked inflows of $2.7 million last week, indicating a second week of inflows and reversing a longstanding trend of outflows.
Michael Shaulov, Fireblocks CEO, in a discussion with Cointelegraph on June 26, pointed out a “considerable level of interest” from institutional investors in foundational assets like Bitcoin and Ethereum, but a diminished interest in alternative cryptocurrencies.
Shaulov explained that the narrative around Ethereum is centered around the notion that future tokenization ecosystems are likely to be EVM-based and Ethereum’s role as a utility in these contexts. While the narrative around Bitcoin is less defined, Shaulov acknowledges that most investors recognize the importance of holding the cryptocurrency.