Institutional Crypto Funds See Biggest Inflows in 3 Months

Institutional investment in cryptocurrencies is at its highest level in three months, a sharp jump from $47 million in outflows the previous week, data from CoinShares showed on Tuesday.

The "Weekly Report on Digital Asset Fund Flow" shows that last week, the total inflow of digital asset investment products was 193 million US dollars, which is the highest level since early December 2021.

The last time investment levels were close to current figures was in the week ended Dec. 3, when $184 million inflows were made.

Fund flows were mostly focused on Bitcoin (BTC), with more than 50% of the funds going to BTC-based products, with inflows totaling $98 million.

Solana (SOL) came in second with $87 million in net inflows this week, which CoinShares called “the largest weekly net inflows on record.” SOL-based funds now account for 36% of institutional firms' assets under management, the second-largest altcoin behind Ethereum (ETH). ETH-based inflows totaled just $10.2 million last week.

Europe is a major contributor, with companies seemingly buoyed by the news that a bill banning proof-of-work (PoW) mining has not passed. 76% of last week's inflows, or about $147 million, came from the region.

The reported figures stand in stark contrast to figures from a week earlier, when North American firms pulled $49.4 million out of BTC and ETH amid fears of heightened crypto regulation.

Cash inflows from institutional firms have correlated with the price of bitcoin, which recently surged above $48,500. The same goes for Ethereum, which broke through $3,300.

Last week, executives from crypto firms Nexo and Amber Group discussed the "exponential" growth of institutional investment in cryptocurrencies at the Blockchain Africa 2022 conference, saying that while institutional onboarding has increased, there may still be entry. obstacle. Kalin Metodiev, co-founder and managing partner of Nexo, said most companies would probably claim that the crypto market is “still too volatile.”