Institutional-grade crypto asset funds are seeing their biggest weekly inflows since late 2021, indicating that institutional investors are reviving their interest in crypto assets. With $346 million in inflows for the week, fund manager CoinShares recorded a new record, the greatest amount seen in the previous nine weeks. The rise in volume and open interest in the bitcoin derivatives markets, according to Giovanni Vicioso, the global head of cryptocurrency products at CME, is a “clear indication that institutions are moving into this space.”
According to CoinShares, the new funding has caused the total assets under control to reach $45.3 billion, an 18-month high. It is anticipated by James Seyffart, an analyst with Bloomberg ETFs, that spot Bitcoin funds will be authorised in the second week of January. Regarding the possible acceptance of spot Bitcoin ETFs, ETF Store President Nate Geraci made the following statement: “If SEC doesn’t allow GBTC to up list at the same time as other spot BTC ETFs launch, it will be mass chaos.”
When it comes to investing in cryptocurrencies, institutional investors have traditionally outpaced regular investors. Weekly inflows have reached yearly highs over the last five weeks, and the spot market capitalization has increased by about 24% over the same time frame. The overall capitalization of the cryptocurrency market reached an 18-month high of $1.52 trillion on December 2, indicating a successful week for the industry. With a surge towards $40,000, Bitcoin led the group, while Ethereum topped $2,100 and SOL maintained its position above $60. At the time of writing, Chainlink (LINK), which had increased by 7% on the day to surpass $16, was the leading high-cap mover.
