- Institutional investors are increasingly favoring Bitcoin investment funds and crypto ETPs, attracting over $1 billion in inflows last week.
- Bitcoin exchange-traded products (ETPs) dominated the crypto fund market, coinciding with BTC’s price resurgence above $66,000.
- CoinShares’ latest report highlights that Bitcoin investment products garnered the majority of the capital inflows, underscoring its dominance in the crypto investment landscape.
Bitcoin investment funds see record inflows as market sentiment turns positive, driven by a bullish market outlook and favorable monetary policies.
Institutional Investors Flock to Bitcoin Amid Market Resurgence
Data from CoinShares indicates a significant shift in market dynamics as institutional investors poured $1 billion into Bitcoin (BTC) investment products in the week ending September 27. This substantial inflow marks a third consecutive week of rising investments, with BTC products representing approximately 87% of the total capital influx. As a result, the total assets under management (AuM) for Bitcoin soared to an impressive $74.6 billion.
Ethereum Breaks Negative Streak with Positive Inflows
While Bitcoin dominated the inflows, Ethereum (ETH) investment products also showed notable progress, ending a five-week trend of outflows by securing $87 million in new investments. Although ETH experienced net outflows of $60 million for the month, this positive weekly performance signals investor confidence in Ethereum’s future prospects. According to CoinShares, this is the first significant inflow for Ethereum since early August.
Market Sentiment and Regulatory Developments Propel Inflows
James Butterfill, head of research at CoinShares, attributes the surge in investment inflows to expectations of continued dovish monetary policies in the U.S., which have arguably bolstered market sentiment. The recent approval of options for specific U.S.-based investment products has also likely contributed to this positive outlook. Supporting this sentiment, data from Alternative.me’s Crypto Fear and Greed Index showed the index reaching its highest level since July 31, entering the “greed” zone at 61, a significant rise from the previous month.
Bitcoin Faces Resistance Despite Recent Rally
Despite a substantial 26.5% rally from September 6 to September 27, with Bitcoin’s price hitting a local high of $66,840, it faced resistance and corrected to $63,815. Notable crypto analyst McKenna highlighted that a break above the crucial $65,000 level is essential to shift the current bearish market structure. Data from Coinglass reinforces this sentiment, showing substantial liquidity orders between $65,000 and $66,000, underscoring the challenge Bitcoin faces at these levels.
Conclusion
In summary, the latest data shows a clear preference for Bitcoin investment products among institutional investors, driven by positive market sentiments and supportive regulatory developments. Ethereum also displayed resilience, breaking its pattern of outflows. However, Bitcoin still faces significant resistance levels that need to be overcome to sustain its upward trajectory. As always, investors should conduct thorough research and consider potential risks before making any investment decisions.
