Green sprouts?Institutional crypto funds see first inflows in 5 weeks

After five weeks of consistent outflows, institutional investment is finally back in crypto funds, with BTC becoming the asset of choice and ETH falling out of favor.

in its weekly Digital asset capital flow In a report published Jan. 24, crypto investment firm CoinShares observed inflows into some institutional products.

It was the first net positive inflow in five weeks, with $14.4 million re-entering the space and investors buying the dip.

Researchers report The inflows came during a period of significant price weakness, adding that this suggests investors “see this as a buying opportunity” at current price levels.

Funds continued to flow out of CoinShares’ own BTC fund, but 21Shares and ProShares recorded small gains. Most of the money flowed into Bitcoin, with $13.8 million this week. Ethereum was the biggest loser over the period, with $15.6 million outflows, but multi-asset products made up the balance, resulting in an overall net inflow.

CoinShares observes that the current seven-week Ethereum Outflows now total $245 million, “highlighting that much of the recent bearish sentiment among investors has been focused on ethereum rather than bitcoin.”

Analyst Willy Woo also said this is an early sign that institutional money is starting to return:

Early signs of institutional money starting to return. pic.twitter.com/4P7d3Fmq4I

— Willy Woo (@woonomic) January 24, 2022

However, the funds included in the report had total assets under management of $51 billion, the lowest level since early August 2021. AUM has been in the doldrums as the value of the underlying asset has fallen over the past few months. Grayscale, the world’s largest fund, was unchanged, with $30.6 billion in assets under management, according to its latest figures. renew However, on January 25, the fund traded at a record discount of around 30%.

related: Bearish sentiment may fade soon, according to Coinshares and Bitcoin metrics

Analysts and traders are looking for the following entry points Bitcoin bounces back and reclaims $36,000 As reported by Cointelegraph.

The asset plummeted to a six-month low of $33,000 in late Monday trading, but has since recovered steadily, returning to $36,276 with a 10% return at the time of writing, according to Tradingview data. If the momentum in the spot market continues in this direction, weekly institutional inflows could follow.