UpdatesJul 19, 2023

Inflows to cryptocurrency mutual funds are constantly growing. Bitcoin dominated as much as 99% of the share

BTC is by far the most popular digital asset among institutional investors.

Investment funds investing their capital in Bitcoin have enjoyed a significant and steady increase in popularity recently. Analysts of the digital currency sector emphasize that these entities have recorded a significant impact of the measures for the fourth week in a row. It is worth noting that this time it amounted to as much as 137 million dollars. Moreover, investment funds that focus their attention on the oldest cryptocurrency outperformed other funds aggregating their assets in digital currencies. Inflows to bitcoin funds have recently accounted for as much as 99% of the total capital invested in this innovative financial sector.

Inflows to bitcoin mutual funds are growing

According to data from the popular financial website CoinShares, investment funds investing capital in BTC recorded the inflow of funds for the 4th time in a row. The total pool of funds obtained in this way is currently USD 742 million. Due to this fact, the 10-week average value of outflows was adjusted.

The current inflow of funds to cryptocurrency investment funds that we have been observing recently has been the largest in a long time. This is because the last time we could observe similar values was at the stage of the fourth quarter of 2021. This continued positive trend in the sector can be attributed to several significant factors.

Cryptocurrency industry analysts noted the return of positive sentiment to the digital currency sector after Ripple Labs' partial victory over the US Securities and Exchange Commission (SEC) in the ongoing trial within the US justice system. As a result, the digital currency XRP has greatly increased its value per coin following the news of the court ruling. It should also be borne in mind that the rest of the recently depreciated altcoins followed in Ripple's footsteps, recording noticeable increases.

Outflows from Ethereum mutual funds

Finally, let's not run away from Ethereum data. As mentioned earlier, 99% of the inflows to cryptocurrency mutual funds were related to the allocation of capital towards Bitcoin. While BTC has completely dominated the market recently, the second largest digital currency, Ethereum, has received much less interest from institutional investors.

Although the oldest cryptocurrency has significantly extended its dominance in the case of inflows to investment funds, it did not cause a noticeable change in the price per coin. This is because it continues to change hands around $30,000 per unit. After the end of the court battle between Ripple Labs and the SEC, altcoins began to gradually appreciate in value. This situation caused the share of BTC in the digital currency sector in terms of capitalization to fall below 50%. This data comes from the CoinMarketCap platform.