Institutional investors increase their crypto holdings for five weeks straight, indicating that market players are once again bullish on Bitcoin (BTC) and the major altcoins despite the recent selloff in the crypto markets.
According to digital asset management CoinShares, investment flows into crypto goods totalled $42 million in the week ending September 19, with $15 million going into Bitcoin funds. BTC investment products have seen positive inflows for only the third time in 16 weeks.
Investors bought $6.6 million worth of Ether (ETH) products and $3.7 million worth of multi-asset funds this week, increasing the value of all main assets.
Investors also put $4.8 million into Solana (SOL), despite a denial-of-service interruption caused by network congestion earlier this week.
With $28 million in weekly inflows, 21Shares was the product with the most inflows. The producer of physically-backed crypto exchange-traded products now manages $1.87 billion in assets. With $43.177 billion in total assets, Grayscale remains the largest crypto asset manager.
In tandem with a broad market recovery that began in late July, fund managers have begun purchasing crypto. After plummeting to about half that amount in mid-July, crypto markets topped $2.2 trillion last week.
However, as a result of the Chinese Evergrande revelation, all major crypto assets had suffered significant losses by Monday.
Institutional investors have become major players in the cryptocurrency market, indicating that digital assets are becoming more widely accepted.
Earlier this year, some of crypto’s leading asset managers told Cointelegraph that investing in digital assets no longer carries the same level of career danger as it once did, implying that more financial counsellors and wealth managers will enter the market.
A recent poll conducted by London-based crypto fund Nickel Digital Asset Management indicated that the majority of hedge fund executives have already invested in cryptocurrencies.
