BTC Funds Are Locking Record Inflows Of $429 Million In the Past Week

BTC funds are locking record inflows of $429 million over the past week during the rising inflation concerns and the worsening macroeconomic outlook so let’s look into the analysis some more in today’s BTC news.

According to a report by the international news outlet Reuters, the institutional investors bought more than $429 million worth of assets via different funds and products over the week ending n December 7, which was the second-highest on record. The move brought the total assets by institutional investors and fund managers to an all-time high of $15 billion which represents a multifold of increases from the end of 2019 when the assets under management hit $2.57 billion.

12/07/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.

Total AUM: $12.7 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/8gFbyw7K96

— Grayscale (@Grayscale) December 7, 2020

The leading inflow was done by Grayscale which is the world’s biggest crypto fund that gained popularity for its GBTC product in recent times. The fund purchased about $336.3 million worth of bigger-cap crypto assets last week and lifted the assets under management to more than $12.4 billion. The company’s biggest inflow on record was $468 million three weeks ago. James Butterfill, the investment strategist at Coin Shares, said that the institutional clients were shifting the narrative of crypto from the many inquiries of a speculative nature to the ones that say BTC is here to stay as he added:

“Given the levels of interest, this suggests we are only on the cusp of institutional adoption rather than it cooling down.”

Overall, The BTC-focused funds and products attracted more than $334.7 million in inflows last week and brought a total of over $4 billion. In contrast, gold saw outflows from investment products at a record number of $9.2 billion in the past four weeks alone while BTC saw inflows totaling $1.4 billion in the same timeframe as the report noted. The inflows into gold products remained higher with $45.7 billion.

The investors were not purchasing only BTC. Ethereum is the world’s most used crypto-asset which saw $87.1 million in inflows over the past week with the investors citing the upcoming ETH 2.0 upgrade as the main catalyst for investing. The upgrade means a faster, more scalable, and lower fee network that is deployed as DeFi apps are choosing ETH to build on. In the meantime, BTC tumbled in the past day despite the good news and is now trading at $17,950 with the BTC Funds recording record inflows.