Big investors continue to feel bullish on Bitcoin, with more cash flowing into funds from institutions, according to a new report.
Last week, investors plugged over $114 million into big funds for the fourth consecutive week, digital assets firm CoinShares said in a Monday report. The cash flowed into big funds for accredited investors, such as Grayscale, 3iQ, and 21 Shares.
And by far, the main focus was Bitcoin, with $104 million invested, CoinShares said. It added that on the whole, there are “very low volumes in the Bitcoin market.”
CoinShares Head of Research James Butterfill noted that the improving sentiment for the asset class was down to “a flight to safety by investors fearful of the ongoing traditional finance challenges.”
Some investors are seeing Bitcoin as a “safe-haven” product following the collapse of a number of crypto- and tech-friendly banks in the U.S., such as Silicon Valley Bank and Signature Bank.
The report added that despite Ethereum’s long-awaited—and successful—upgrade last week, only $0.3 million of inflows hit such funds.
Ethereum, the second largest cryptocurrency by market cap, on Wednesday implemented its historic Shanghai upgrade, allowing the withdrawal of staked ETH by the network’s participants.
Some analysts estimated that over $300 million of the crypto would immediately be sold following Shanghai but the price of ETH has actually pumped since the upgrade.
Despite the increased appetite from investors, Bitcoin at the time of writing was trading for $29,414, according to CoinGecko, down 2.9% in the past 24 hours and sitting firmly below the $30,000 mark it smashed past one week ago.
And the biggest cryptocurrency by market cap is still way below—by 57%—the $69,044 all-time high it hit in November 2021.
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Source: https://decrypt.co/136977/bitcoin-funds-100m-investors-safe-haven
