News - Institutional investors buy the 'crypto-dip'
Investors in digital investment products, such as crypto-EFT, have reportedly taken advantage of the recent market correction in Bitcoin and other crypto currencies to expand their positions. This is according to a report from asset manager CoinShares.
According to the report, these investment products now recorded inflows for the fifth week in a row, this time worth a total of $1.3 billion. CoinShares speaks of "significant purchases" despite recent "weakness" in the crypto market.
Substantial inflows into Bitcoin and Ethereum
Bitcoin could count on an inflow of $407 million. For the second-largest crypto currency, Ethereum, that amount fell almost twice as high: $793 million. ETH's stronger price drop toward $2,100 is said to have created "significant buying interest."
XRP and Solana also benefit
XRP and Solana also experienced "notable inflows" of $21 million and $11 million, respectively, according to CoinShares. Moreover, purchases in all crypto products were "widely spread" across different regions.
ETPs popular with institutional investors
The assets listed are exchange-traded products, such as ETFs or ETPs, that are of interest to institutional clients and can be purchased through regular brokerage accounts. For Bitcoin, these types of ETPs now represent about 7.1 percent of the total market capitalization, according to CoinShares.
Assets under management down slightly
Total assets under management in ETPs, meanwhile, dropped to $163 billion. That's below the record level of $181 billion, the highest point ever measured, according to asset manager data.