Investment products backed by the pioneer crypto saw inflows for the third straight week, confirming institutional investors' return to digital gold.
Bitcoin investment products generated $68.7 million in inflows between Sept. 27 and Oct. 1, which represents a 36% increase in exposure week-over-week, according to CoinShares' latest Digital Asset Fund Flows Weekly report.
The recent strength in inflows to digital asset products has been driven by products tracking bitcoin. This follows an eight-week streak of outflows until early September.
Despite institutional investors continuing to increase exposure to digital assets, total inflows for digital investments were $90 million for the week. This is the seventh consecutive week in which institutional investors have been inflowing into digital assets.
Ethereum investment products also attracted substantial institutional investor capital, with inflows totaling $20.2 million. In terms of gains for the week, bitcoin gained 7.4%, and Ethereum gained 3.2%.
Also last week, altcoins had mixed appetites. Cardano and Solana posted inflows of $1.1 million and $700,000, respectively, while Polkadot and Binance Coin lost $800,000 a piece. Funds that invest in multiple assets also saw minimal inflows of $1.9 million.
As of five weeks ago, inflows to products tracking Solana sank by 98% from a high of $38.9 million.
Despite the markets' recovery from July's pull-back, the report noted that the $2.4 billion traded last week was still a small volume compared to the $8.4 billion in institutional crypto products traded weekly during the peak of 2021's bull cycle in mid-May.
The estimated combined assets under management of institutional asset managers total $57.1 billion, up 8.5% this week.
With a total of $41.1 billion under management, Grayscale remains the sector's largest player, representing 71% of the total asset value. According to CoinShares data, the XBT fund and the Purpose fund have respectively $2.2 billion and $2.1 billion in Asset Management.