According to Coinshares, institutions have invested more than $500 million in Bitcoin in 2022. Notably, $126 million of the BTC buys have gone into Bitcoin ETPs in the past week.
Although Bitcoin inflows increased in the past week, Ethereum institutional inflows tanked. The recent dip in the prices of cryptocurrencies has not stopped the big players in the crypto market from buying. Mega institutions are largely known for investing strategically, and buying Bitcoin’s dip seems to be logical.
Bitcoin Inflows vs. Ethereum Inflows
The institutional inflows of Bitcoin and Ethereum have always been a key indicator of investors’ interest in both assets at a given time. Bitcoin has dominated Ethereum for most of the time and the past week reflected a broader picture of the market.
Bitcoin gained over $100 million from investors, while ETH outflows reached $32 million. The director of research at Coinshares revealed that Ethereum has experienced weighty outflows for nine consecutive weeks.
Sometime this year, ETH looked to be gaining momentum again, with the charts revealing that dominance was shifting from Bitcoin to Ethereum. However, that was short-lived and Bitcoin rules once again. Bitcoin’s market cap is currently more than twice Ethereum’s cap.
The institutional interest in both assets has also been reflected in their prices. Yesterday, Bitcoin gained momentum and increased by about 7%. While Ether increased too, the asset gained only 3%. Comparing the weekly performance of both assets, statistics from Coinlore indicate that Bitcoin is 4.8% down in the past week while Ether is over 7% adrift of its last week’s value.
Since the start of the year, Ethereum-based funds have lost $357 million. While Bitcoin has had more inflows than outflows, blockchain funds as a whole had an outflow of $26.3 million in the past week.
As it stands, many crypto investment firms may be bracing for more turbulent times. Already, crypto companies are reducing their hire rate and cutting down expenses as much as they can.
