CoinShares reports surge in institutional capital in crypto markets

CoinShares, a digital asset management firm, has reported a significant influx of institutional capital into the crypto markets, indicating a positive shift in investor sentiment. This information comes from CoinShares’ most recent Digital Asset Fund Flows Weekly Report.

According to the report, the crypto markets have seen the highest inflows for 2023, following BlackRock’s application for a bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC).

The week witnessed the most significant weekly inflows since July 2022, amounting to $199 million. This influx corrected nearly half of the outflows observed over the previous nine consecutive weeks.

The report further stated that exchange-traded product (ETP) trading volumes were 170% of the average for the current year, totaling $2.5 billion for the week. CoinShares attributes this renewed optimism to recent announcements from high-profile ETP issuers that have applied for physically backed ETFs with the SEC. The total assets under management (AuM) now stand at $37 billion, the highest since before the collapse of Three Arrows Capital.

Regarding market share, bitcoin products absorbed most inflows with $188 million, while short-bitcoin products experienced outflows for the ninth consecutive week.

Other digital assets, including ethereum and multi-asset ETPs, also saw a significant increase, receiving inflows of $7.8 million and $8.1 million, respectively. In the past week, altcoins such as XRP and Solana recorded minor inflows of $0.24 million and $0.17 million, respectively.

This data underscores institutional investors’ growing interest and confidence in the crypto market, driven by positive developments and regulatory advancements. However, it’s important to note that investing in cryptocurrencies involves a high degree of risk, and investors should exercise due diligence before making any investment decisions.

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