Institutional Interest in Bitcoin Increases Significantly

Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term crossed the price level of $52,000 on Monday for the first time in 4 months after a substantial jump in demand from retail and institutional investors. BTC’s retail demand has been on the rise since the start of August 2021, but the institutional demand struggled during the first three weeks of last month.

However, the latest digital asset weekly fund flows report published by CoinShares, highlighted a sharp increase in institutional inflows of Bitcoin-related investment products. The cryptocurrency attracted approximately $59 million worth of institutional inflows last week.

Overall, crypto investment products saw inflows worth $98 million in the last week. This is apart from Bitcoin, Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term (ETH), Solana (SOL), Cardano (ADA), Polkadot (DOT) and XRP, which also attracted significant inflows during the mentioned period.

“Bitcoin saw inflows totaling US$59m, marking a potential turnaround in sentiment amongst investors. This is the first inflows following an 8-week spell of outflows, the longest endured by any digital asset investment product. Solana remains the favorite with weekly inflows totaling US$13.2m last week, doubling its total inflows year-to-date. While AUM has grown from US$15m the previous week to US$44m last week,” CoinShares mentioned in the report.

In its previous digital asset weekly fund flows report, CoinShares highlighted record inflows in Cardano investment products. ADA attracted over $10 million worth of inflows in the last week of August 2021.

Bitcoin vs Altcoins

The latest data from CoinShares shows that the institutional interest in the cryptocurrency market is more diversified. Altcoins now account for a record 35% of the total digital asset investment products. Apart from Bitcoin, institutional investors have started diversifying their portfolios through investment in Ethereum, Solana, Cardano and XRP.

“Ethereum saw the third week of inflows totaling US$14.4m, while market share is at a record 28%, highlighting that while some investors have protocol concerns, its dominance is continuing to rise. Other altcoins, such as Cardano, Polkadot and XRP all saw notable inflows of US$6.5m, US$2.7m and US$1.2m, respectively,” CoinShares added.