Some Institutional Investors are gaining profits amid BTC’s recent pull-back
CoinShares released a new report that indicates some institutional investors have gained profit during BTC’s recent consolidation. CoinShares’ weekly digital asset flows report depicts that there are $85 million in outflows from institutional crypto products in the past week. The data suggests “some investors are continuing to take profits after [BTC’s] strong price appreciation.”
The report focused on the increasing U.S. dollar by stating that the USD index “is typically inversely correlated to Bitcoin prices.” The report could also explain why some of the investors are taking profits at present. The organization also figured out the modest outflows from Ethereum-derived investment products, with $3 million going out of the market.
Regardless of the profit-taking, institutional inflows remain strong, as $359 million exploded into the cryptocurrency investment products this week. Institutions have single-mindedly focused on BTC as the Bitcoin products are representing 1% of the week’s total capital flows.
CoinShares also indicates that the crypto inflows are back to their pre-Christmas levels, even though there was a 97% drop over three weeks after the holiday break. Daily volumes are increased by more than 450% every year. The institutional products represent 6% of the combined Bitcoin volume which is dropped by 14% from the start of the month.
Crypto has seen more in the past due to the growing institutional appetites and the major global companies filing their treasuries with Bitcoin. Chicago Mercantile Exchange invested more than 11 million BTC in futures trade in 2020 and in the last month the exchange announced that it plans to introduce cash-settled Ethereum futures contracts in early February, pending regulatory approval.
Ninepoint Partners filed its final prospectus on January 20, 2021, for a Bitcoin Trust approved by the Toronto Stock Exchange.
