CoinShares has released a weekly report on investments by financial institutions in cryptocurrency products. Over the past week, investment inflows fell to $ 21 million.
CoinShares analysts report that interest in cryptocurrencies from institutional investors has significantly decreased. Such a low inflow of investments in cryptocurrency products has not been observed since October 2020, when the bitcoin rate was below $ 14,000.Trade volumes have also noticeably decreased – daily transactions were made on average by $ 788 million, while since the beginning of 2021 the average has exceeded $ 900 million. But even this is noticeably higher than in 2020, when the trading volume was $ 137 million per day.
On the other hand, all market participants, with the exception of CoinShares, showed positive capital inflows. Although market leader Grayscale, which manages $ 40.6 billion in assets, received only $ 100,000 in additional investment. $ 10.8 million was withdrawn from CoinShares products, and 21Shares showed an inflow of $ 22.6 million. Analysts associate low rates with profit taking by some market participants.
Bitcoin remains the most popular cryptocurrency, with an inflow of $ 10.2 million. Investors are also interested in ETH-based products ($ 5.4 million) and complex investment funds ($ 6.4 million). But the products on Polkadot lost $ 1.4 million, which is about 5% of their total capitalization. The total investment in cryptocurrency products managed by various companies was $ 52.1 billion.
Recall that a week earlier, the inflow of investments in cryptocurrency products was noticeably higher – $ 99 million. However, before the record high in January, when more than $ 1 billion were invested in such funds in a week, it was a long way off.
According to a report by JPMorgan analysts, in the first quarter of 2021, the volume of retail investment in bitcoin exceeded the investment of institutional investors who began to buy fewer cryptocurrencies.
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