Weekly Cryptocurrency Inflows Dropped Significantly
The cryptocurrency market rebounded today after Bitcoin jumped above $54,000 for the first time in two weeks. But the numbers from the last week showed that the inflows in crypto-related investment products dropped significantly.
According to a report published by CoinShares, cryptocurrency investment products attracted a total of $108 million during the first week of March, compared to $395 million in the last week of February. The report mentioned that the weekly crypto inflows dropped to their lowest level since January 2021.
Bitcoin, the world’s largest cryptocurrency accounted for nearly 90% of the inflows last week. Ethereum and Polkadot attracted $4 million and $2 million respectively. CoinShares added that despite the recent drop, net cryptocurrency inflows during this quarter have already matched the total for Q4 2020.
“Last week denoted a significant rise in US Treasury Yields, reaching levels not seen since early 2021. The rising yields have taken their toll on the gold market while Bitcoin has been remarkably resilient. By our analysis this is not a surprise, Bitcoin differs from gold in that it tends to rise in a rising bond yield environment while evidence suggests it is becoming an inflation hedge” CoinShares mentioned.
Grayscale
Grayscale remained the largest institutional holder of Bitcoin as the crypto asset manager has more than 655,000 BTC under management with a total value of nearly $34 billion. The company also holds 3.17 million ETH valued at $5.68 billion. Finance Magnates reported last week about the rising interest of institutional investors in Polkadot. The cryptocurrency saw $7 million in institutional inflows during the last week of February. Grayscale announced in February that the company is considering several new digital assets for potential new product offerings. The crypto asset manager has already accelerated its accumulation of altcoins as the company purchased 137,947 Litecoin (LTC) and 23,605 Bitcoin Cash (BCH) during the last 30 days.
The firm reported minor outflows in Bitcoin and Ethereum during the last 24 hours as 111 BTC and 613 ETH left Grayscale.
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