Institutional Money Flows Into Bitcoin, As Bullish Momentum Continues
Institutional money keeps flowing into crypto market, which probably has something to do with the recovering market prices. But also, retail investors have woken up. But with large market cap, real market movements are caused by institutional level money.
Bitcoin, as well as altcoins, are doing well. After the bearish summer, things are starting look bullish again for the wider cryptocurrency market. Large, medium and small market cap coins are all seeing an appreciation in their value is traditionally bullish Q4 continues. Only less than two weeks into October, bitcoin prices have reached four-month highs.
As bitcoin rallies, investors are putting money back in the market to make sure that they do not miss out on the train. Asset management firm CoinShares reported $226 million inflows for the week. Bitcoin dominated this with a total weekly inflow of $225 million. Leaving altcoins behind with only $1 million of inflows for the week.
This marks the eight straight weeks of inflows for the crypto market that come up to a total of $638 million of inflows. Bringing CoinShare’s total assets under management (AUM) to $63.65 billion.
The record for assets under management for CoinShares currently sits at $67 at its peak and currently, AUM is only 5% away from reaching the all-time high. Most of this has come from renewed faith in bitcoin as sentiment has turned towards the positive for the digital asset.
BTC/USD Source: CoinMarketCap / trading view
The recent statements from SEC chair Gary Gensler saying that the U.S. was not planning on banning bitcoin have helped to turn the tide in favor of the asset. With this, institutional investors’ confidence has returned to crypto. And ahead of the first bitcoin ETF to be approved in the country, big money is getting ready to trade on the asset.
Altcoins
Altcoins did not do especially well with inflows the past week. Although top earners like Solana and Cardano saw inflows, the numbers were quite disappointing. Altcoins like Polkadot, Ripple, and Litecoin all experienced outflows to the tune of almost $3 million, signifying a decreased interest in the altcoin market from institutional investors.
Altcoins have not entirely lost out to bitcoin but the pioneer cryptocurrency still commands a significant share of the market. Ethereum also experienced outflows and this dragged its total AUM to 24%. With bitcoin climbing up to take more market share from the number 2 contender.
The total market inflows mark a significantly positive sentiment among institutional investors. With so much money flowing into the market, the bull rally is likely to continue and a new all-time high may be very near.
