Cryptocurrency Industry Experiences The Largest Investment Inflow in History

 The cryptocurrency industry is currently experiencing the largest inflow of funds of all time and this inflow is mainly to Bitcoin. This large inflow into the cryptocurrency industry is coming after the approval of the Bitcoin futures ETF. ETF products are sought after by investors as they are convenient. Most of the inflows has been from ProShares who was recently approved to provide Bitcoin futures ETF.

Bitcoin Inflows

Last week, investment products of digital assets had over a billion dollars inflows which is an absolute record with a huge gap compared to the inflows in previous weeks this year. The assets under management have a worth of over $76 billion. The inflows to these investment products are at an all-time high and this is coming at a crucial time.

This massive inflow into the market can be associated with the approval of the Bitcoin futures ETF by the SEC. This listing and approval of the ETF have been responsible for a huge part of this week’s inflows. ProShares is singly responsible for bringing about $1.2 billion out of the $1.47 billion inflows last week. This confirms the assertion that the increase in inflows to crypto investment products has been driven by the approval of Bitcoin futures ETF.

In the previous week, ETC Group was the second-biggest fund provider after ProShares. ETC Group brought about $111 million in inflows last week. There are two providers that reported the outflows of their funds. These are CoinShares XBT and 3iQ: both of which had about $60 million outflows. These outflows are most likely due to the redistribution of funds as a result of the availability of ETF products that are more convenient for these providers.

Altcoin and Institutional Investors

Institutional investors are increasingly investing in Bitcoin as they seek to increase their Bitcoin holding. While investment in Bitcoin has been on the rise by institutional investors, their investment in some altcoins is decreasing. For the third consecutive week, institutional investors have been reducing their Ethereum holdings with about $1.4 million outflows in the previous week.

While institutional investors have been losing interest in Ethereum, some other altcoins are still being bought by these large investors. The altcoins with inflows by institutional investors include Solana, Cardano and BNB with over $15 million inflows in total. These altcoins brought inflows that are almost insignificant when compared to the billion-dollar inflow by Bitcoin.