Coin Shares: BTC Continues To Be Primary Target For Investors
Coin Shares reports that institutional investors have made Bitcoin (BTC) their primary focus over the past two weeks as the cryptocurrency surges to new 2023 highs, with a current price of $31,027.
In a recent report by James Butterfill, head of research at Coin Shares, it was highlighted that over the past two weeks, Bitcoin-related products experienced substantial inflows of $310.6 million, dominating the crypto product market.
Butterfill emphasized that “Bitcoin remained the primary focus for investors,” with the inflows from the last two weeks accounting for an overwhelming 98% of all digital asset flows.
After nine consecutive weeks of outflows, the past two weeks have witnessed a reversal in trend, with significant inflows. Additionally, the previous week, short Bitcoin products observed a minor outflow of $0.9 million.
This marks the second instance in 2023 where Bitcoin products have constituted 98% of inflows into cryptocurrency investment products. This surge in Bitcoin’s price and dominance coincides with recent developments.
After nine consecutive weeks of outflows, the past two weeks have witnessed a reversal in trend, with significant inflows. Additionally, the previous week, short Bitcoin products observed a minor outflow of $0.9 million.
On the other hand, Ethereum investment products saw a total of $2.7 million in inflows during the last week, marking the second consecutive week of inflows after prolonged outflows.
In an interview with Coin Telegraph on June 26, Fireblocks CEO Michael Shaulov expressed that institutional investors have shown a “considerable level of interest” in core assets like Bitcoin and Ethereum (ETH), with Ethereum currently priced at $1,955. However, the same level of interest has been relatively lower for alternative cryptocurrencies.
According to Shaulov, the prevailing narrative surrounding Ethereum revolves around the belief that future tokenization ecosystems will predominantly rely on the Ethereum Virtual Machine (EVM). As a result, Ethereum is expected to serve a significant role in terms of utility.
Regarding Bitcoin, Shaulov noted that the narrative needs to be more defined. However, he emphasized that most investors acknowledge the necessity of holding the cryptocurrency.
In conclusion, Bitcoin remains the primary focus for investors as institutional interest and substantial inflows continue to drive its market dominance. In the past two weeks, we have witnessed a reversal in the trend of outflows, with significant inflows reported for Bitcoin-related products. This surge aligns with Bitcoin’s soaring price and market dominance. Additionally, Ethereum experienced a notable increase in investment product inflows, while alternative cryptocurrencies garnered comparatively less interest. The prevailing narrative surrounding Ethereum suggests its pivotal role in future tokenization ecosystems, while Bitcoin’s narrative emphasizes its importance as a core asset. Both Bitcoin and Ethereum remain prominent choices for investors in the evolving cryptocurrency landscape.
