Institutional Investors Pour $199 Million into Cryptocurrency Funds, Marking the End of Withdrawals
Institutional investors have reversed the trend of withdrawals, as data from CoinShares reveals a significant influx of $199 million into cryptocurrency funds between June 19 and 25. This marks the largest capital flow in a year and ends a nine-week consecutive streak of outflows. In Brazil, institutional investors allocated $8.5 million into crypto funds in the last week.
From April 17 to June 18, digital asset funds experienced a $423 million loss in assets under management (AUM). CoinShares previously attributed the capital outflow to institutional profit-taking. However, the recent injection of $199 million in the past week has recovered nearly half of the lost AUM over the past nine weeks. CoinShares suggests these massive inflows may be connected to news of major asset managers seeking approval for a Bitcoin ETF in the United States, including BlackRock.
Among the crypto funds listed in the CoinShares report, those focused on Bitcoin witnessed the largest influx of investments, totaling $187.6 million. Conversely, institutional investors withdrew $4.9 million from funds betting on Bitcoin’s decline. Crypto funds with exposure to multiple assets grew by $8.1 million in AUM, while funds tracking Ethereum’s price accumulated $7.8 million in inflows.
The recent surge in institutional investments into cryptocurrency funds signifies a shift in sentiment and highlights renewed confidence in the crypto market. The inflow of $199 million, along with the potential approval of Bitcoin ETFs, indicates growing institutional interest and further establishes digital assets as an important investment class. While Brazil witnessed a positive inflow, it still faces challenges in retaining AUM. As the cryptocurrency market continues to evolve, tracking institutional movements and global trends remains crucial for investors.