After five weeks of constant influx, institutional investment in cryptocurrencies is finally back, with BTC as an asset while ETH loses favour.
In its weekly digital asset fund flow report released on January 24, crypto investment firm CoinShares noted the inflow of funds for some institutional products.
For the first time in five weeks, there was a net positive net outflow as $14.4 million returned to the region as investors bought lower.
The researchers said that the influx came at a time of significant declines in prices and added that this indicates that investors “see this as a buying opportunity” at the current price level.
Capital continued to flow from its CoinShares fund into BTC, but 21Shares and ProShares recorded smaller gains. Most of the supply came from bitcoin, which came in at $13.8 million for the week. Ethereum was the biggest loser of the period with an outflow of $15.6 million, but multi-asset products made up the balance, resulting in an overall net gain.
CoinShares notes that the current seven-week ETH outflow is currently $245 million, “confirming a lot of recent bearish sentiment among investors focused on Ethereum rather than Bitcoin.”
Analyst Willie Wu also suggested that there are early signs that institutional funds are starting to make a comeback:
However, the combined assets of the funds included in the report totaled $51 billion, the lowest level since early August 2021. The decline in assets under management was due to the decline in the value of the underlying assets over the past few months. The world’s largest fund, Grayscale, which had $30.6 billion in assets under management according to its latest report on January 25, was unchanged, but the fund traded at a record discount of about 30%.
Related: Bearish sentiment may dip soon according to Coinshares and Bitcoin metrics
Analysts and traders were looking for entry points after bitcoin’s bounce and $36,000 recovery, according to Cointelegraph.
The stock fell to a six-month low of $33,000 during Monday’s trading, but has since rebounded strongly by 10% to $36,276 at the time of writing, according to Tradingview. If spot market momentum continues in this direction, weekly institutional flows are likely to follow.