Institutional demand in the US has declined somewhat, but European funds are still buying, according to CoinShares’ digital asset investment manager.
According to Coinshares ’22. March’s weekly inflow of funds was the cumulative flow of institutional cryptocurrency products for the week ending March 20, $ 99 million.
The data point to a significant decline in institutional demand as capital inflows fell 59% from last week to $ 242 million.
However, the researchers noted that the assets under management of the best institutional investment products reached a record $ 57 billion.
The report added that while demand in the United States eased, institutions in Europe and Canada continued to buy over the past week.
The daily volume of Bitcoin-related products also declined by around 35% to $ 713 million per day compared to an average of $ 1.1 billion per day in 2021. However, trading volumes remained stable at $ 11.8 billion per day.
After strong Ethereum flows in February, it looks like institutions are investing in Bitcoin again, with $ 85 million going to BTC funds, compared to $ 8 million for ETH-based products last week. CoinShares notes that there is very little interest in Binance Coin, Ripple and Bitcoin Cash, respectively.
Grayscale remains the market leader in institutional investment with $ 44.2 billion in total assets, according to the company’s announcement on March 23. Of this amount, 84% was invested in the company’s Bitcoin Trust.
The private equity fund CoinShares, the second largest under $ 5 billion in assets, was the only institutional crypto manager to record a one-week outflow and lose $ 25.9 million. Canada’s 3iQ fund ranked third with an increase of $ 1.1 million, bringing total assets to $ 1.7 billion.
At the time of writing, Bitcoin has continued to correct after falling 3.6% in the last 24 hours and trading at $ 54,850. Ethereum lost 4% during the same period and is currently trading at around $ 1700.