CoinShares Head of Research, James Butterfill has commented on this week’s inflows into bitcoin. “Bitcoin [ETPs] saw inflows totalling USD225 million last week, with the majority of these inflows unusually coming from institutional purchases,” Butterfill says.
“The recent positive price performance in bitcoin is indicative of increasing institutional participation and is supported by our recent institutional survey. That survey represented ca. USD400 billion of assets under management (AuM), and it shows that the average crypto portfolio weighting is 1.1 per cent for institutions that are currently holding digital assets.”
CoinShares comments that coming towards year end it is clear there are a range of potentially price-supportive events such as increasing regulatory clarity in the US, with recent constructive statements from SEC chair Gary Gensler in potentially allowing a futures-based bitcoin ETF in the US. “Rising inflationary risks, increasing adoption and improving investor appetite are additional factors that are beginning to tick all the boxes for greater institutional investor participation in the asset class,” Butterfill says.