In recent weeks, Bitcoin has continued to capture the attention of institutional investors as it reaches new price highs for 2023, according to a report from CoinShares. Over the past two weeks, Bitcoin investment products received inflows totaling $310.6 million, representing the majority of all crypto product inflows. These inflows accounted for 98% of digital asset flows during this period, marking a significant shift from nine consecutive weeks of outflows.
The surge in Bitcoin-related investments can be partly attributed to the anticipation surrounding BlackRock’s spot Bitcoin ETF application, which was followed by similar filings from prominent financial institutions like Fidelity, Invesco, Wisdom Tree, and Valkyrie. Since the filing, the price of Bitcoin has risen by 25.2%, reaching $31,131 at the time of writing.
Bitcoin’s market dominance, a measure of its market capitalization relative to the total market cap of cryptocurrencies, has also increased to 51.46%. This rise further emphasizes the focus on Bitcoin within the overall cryptocurrency market.
While Bitcoin remains the primary choice for institutional investors, Ethereum investment products have seen a reversal in outflow trends. Inflows of $2.7 million were recorded last week, marking the second consecutive week of positive inflows for Ethereum.
According to Fireblocks CEO Michael Shaulov, institutional investors have shown significant interest in core assets like Bitcoin and Ethereum. While Ethereum is seen as the preferred choice for future ecosystems of tokenization due to its EVM-based nature, Bitcoin is considered a necessary asset for many investors.
Conclusion
The continued focus on Bitcoin among institutional investors underscores its prominent position in the cryptocurrency market. As Bitcoin reaches new price highs and dominates the market, it continues to attract significant attention from institutional players who recognize its value as a long-term investment asset.