Institutional Investors Refocus On Bitcoin As Market Losses Intensifies

In light of recent market losses, institutional investors are shifting their focus to bitcoin. Both inflows and outflows show a clear picture that institutions are returning to bitcoin to limit the potential losses from altcoins. This has seen most of last week’s inflows going into the pioneer cryptocurrency, as altcoins mark another week of little to no inflow.

Bitcoin $126 million

Over the last week, bitcoin has received renewed confidence in its performance. Institutional inflows to the digital asset have surpassed $126million. Even though the inflows have not been great over the past few months, it is a sign that things could change. 

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The total inflows to bitcoin for the year have exceeded half a million dollars and now stand at $556 million. This trend is due to the volatility that has rocked the market over the past few weeks. 

There was also renewed interest for short bitcoin. The total inflows to bitcoin had reached $1.3million last week. This brings the year-to date inflows up to $55 million. It accounts for 30% (AuM) of all assets under administration.

Bitcoin price chart from TradingView.com

 Source: BTUCSD on TradingView.com| Source: BTUCSD on TradingView.com

Altcoins leave institutional investors

Inputs by institutional investors regarding altcoins were not very strong over the last week. Ethereum that had experienced continued outflows will not get a reprieve. The altcoin’s outflow trends had witnessed another $32million leaving it. It was the ninth consecutive week that the cryptocurrency saw an outflow. It has been withdrawn so much that it now accounts for 7% of Ethereum’s total AuM.

For the week, none of the altcoins experienced any inflows. Institutional investors still have positive feelings about multi-asset investments products. Their total inflow was $4.3million for the week. This is the same inflow that continued throughout the downturn in the stock market.

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The total inflows of digital asset investments products reached $100 million over the last week. Most of the inflows were from the Americas with $88 millions coming from just this one region. European counterparts contributed $11 Million to this number.

Year-to-date, the inflows now stand at $570m and the outflows to investors is at $41m. For the week ending last week, total assets under management (AuM), reached $39.8 trillion.

These numbers suggest institutional investors fleeing altcoins to enjoy the bitcoin safety.

Featured Image from InvestAdvocate. Chart by TradingView.com

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