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"Little Fox Wallet Download Official Website" Bitcoin's yearly highs remain 'prime focus' for investors: CoinShares

2023 07/18

The past two weeks have been the "prime focus" of institutional investors as cryptocurrencies continue to hit new highs in 2023, CoinShares said.

In a July 3 report by CoinShares research director James Butterfill, the analyst noted that bitcoin-related product inflows of $310.6 million over the past two weeks accounted for the vast majority of cryptocurrency product inflows.

[Bitcoin remains the main focus for investors [-], with inflows accounting for 98% of all digital asset flows over the past two weeks," Butterfield said.

Bitcoin inflows on a weekly basis. Source: CoinShares

The last two weeks of inflows reversed the previous nine straight weeks of outflows. Bitcoin short products also saw a small outflow of $900,000 last week.

This is the second time this year that bitcoin products have accounted for 98% of inflows into cryptocurrency investment products, and bitcoin's price and dominance are soaring.

Bitcoin accounted for 98% of inflows into digital asset investment products over the past two weeks. Source: CoinShares.

The surge was largely driven by BlackRock`s June 15 bitcoin spot ETF application, followed by similar filings by Fidelity, Invesco, Wisdom Tree and Valkyrie.

Since the filing, the bitcoin price has risen 25.2% to $31,131 at the time of writing. The data shows that Bitcoin`s dominance, which is a measure of its market capitalization relative to the total market capitalization of all cryptocurrencies, has risen to 51.46%.

Bitcoin Fear and Greed Index at 64 - Greed

Meanwhile, Ethereum investment products saw inflows of $2.7 million last week, the second week of inflows, reversing a long-term trend of outflows.

Related: Why Approval of a Bitcoin ETF Could Unleash $18 Billion in Selling Pressure

In an interview with Cointelegraph on June 26, Fireblocks CEO Michael Shaulov said that there is [considerable interest" from institutional investors in core assets like Bitcoin and Ethereum

, but not in alternative cryptocurrencies.

[The narrative around Ethereum is basically the understanding that future tokenized ecosystems are likely to be based on the [Ethereum Virtual Machine] EVM. If they are based on the EVM, then Ethereum will work."

Schoroff said the narrative surrounding bitcoin was less specific, but said most investors see a need to hold the cryptocurrency.


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