Institutional investors have shown renewed interest in the cryptocurrency space after six consecutive weeks of outflows, with the past few days showing the largest inflows the space has seen since July 2022, of $160 million.
According to a recently published report from CoinShares, Bitcoin was the primary beneficiary for these inflows, with $127.5 million being invested in investment products offering exposure to the cryptocurrency last week. Ethereum ($ETH) investment products, meanwhile, saw outflows of $5.2 million.
Interest in the cryptocurrency space rose to the point that bets on products shorting Bitcoin, meaning their performance is positive when BTC’s is negative, had $30.8 million in inflows, bringing their year-to-date flows to $114 million.
It’s worth noting that cryptocurrency investment products offering exposure to multiple digital assets saw $1.6 million in outflows, while products offering exposure to Solana saw $4.8 million in flows, showing investors are choosing which altcoins to bet on rather than getting broader market exposure.
Solana’s inflows were followed by Polygon ($MATIC) investment products, with $1.9 million in inflows, and by $XRP investment products, which attracted $1.2 million in inflows. Inflows were recorded from several countries, indicating a widespread improvement in sentiment towards the asset class, CoinShares wrote. Notably, the US, Germany, and Canada saw the largest inflows of $69 million, $58 million, and $26 million, respectively.
As CryptoGlobe reported, one of the largest cryptocurrency investors has recently started buying again. Nasdaq-listed business intelligence firm MicroStrategy has bought an additional 6,455 Bitcoin at an average price of $23,238 per coin over the last five weeks, and has paid off the remaining principal of its $205 million loan from Silvergate Bank with BTC.
The acquisition of more Bitcoin brings MicroStrategy’s total holdings up to 138,955 comes, purchased at an average price of $29,817 each, and worth approximately $3.88 billion at the time of writing.
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