Bitcoin Dominates Institutional Attention, Coinshare Reports

According to Coinshares, Bitcoin (BTC) has been the “primary focus” of institutional investors over the past two weeks as the cryptocurrency continues to reach new price highs for 2023.

James Butterfill, the head of research at CoinShares, reported on July 3 that Bitcoin-related products attracted $310.6 million over the past two weeks, representing the overwhelming majority of all crypto product inflows.

“Bitcoin remained the primary focus of investors , with the last two weeks’ inflows accounting for 98 percent of all digital asset flows,” stated Butterfill.

Nine consecutive weeks of outflows have been reversed by the last two weeks of inflows. Over the past week, short Bitcoin instruments also encountered a minor outflow of $0.9 million.

This is the second time this year that Bitcoin products have accounted for 98% of inflows into cryptocurrency investment products, and it coincides with an increase in Bitcoin’s price and prominence.

Bitcoin accounted for 98% of digital asset investment product inflows over the last fortnight. Source: CoinShares.

Much of this increase has been attributed to BlackRock’s application for a spot Bitcoin ETF on June 15, followed by identical filings from Fidelity, Invesco, Wisdom Tree, and Valkyrie.

Bitcoin’s price has increased by 25.2% since the filing, reaching $31,131 at the time of writing. According to data, Bitcoin’s market capitalization relative to the total market capitalization of all cryptocurrencies has increased to 51.46 percent.

Last week, Ethereum investment product inflows totaled $2.7 million, marking the second week in which an extended outflow trend has been reversed.

Michael Shaulov, chief executive officer of Fireblocks, stated that institutional investors have a “fair amount of interest” in Bitcoin and Ethereum but less so in alternative cryptocurrencies.

“The narrative around Ethereum is pretty much the understanding that future ecosystems of tokenizeation are likely to be EVM-based. And if they’re EVM based, then Ethereum is going to play out as utility.”

According to Shaulov, the narrative surrounding Bitcoin has become less specific, but the majority of investors recognize the need to hold the cryptocurrency.