Cryptocurrency investment product I saw According to CoinShares, inflows totaled $130 million in the week ending May 6, reversing five consecutive weeks of outflows.
Institutional investors have increased their exposure to digital assets, with a total of $130 million flowing into cryptocurrency investment products last week, according to CoinShares’ “Digital Asset Fund Flows Weekly” report released on May 13.
Once again, the lion’s share of the movement was attributed to Bitcoin (BTC) investment funds, which received inflows of $144 million.
According to the report, weekly trading volume in investment products fell from an average of $17 billion per week in April to $8 billion in the week ending May 10.
James Butterfill, Head of Research at CoinShares, said:
“These trading volumes highlight that ETP investors are currently less engaged in the cryptocurrency ecosystem, accounting for 22% of total trading volume on trusted exchanges globally compared to 31% last month.”
The data follows widespread selling and uncertainty surrounding US inflation data ahead of this week’s CPI data readout. Institutions poured nearly $116.8 million into spot Bitcoin ETFs between May 6 and May 10, as Grayscale’s GBTC exodus tapered off.
Institutional capital continues to flow into U.S. spot Bitcoin ETFs, recording the largest inflows on record since May 6, according to data from Farside Investors.
Spot Bitcoin ETF funds from Fidelity, Bitwise and VanEck were the only products contributing to inflows on May 13. Fidelity’s Bitcoin fund had the biggest gain on the day with inflows of $20.3 million.
The report also found that the US, Switzerland, Hong Kong, Australia, and Brazil were regionally inflows, as shown in the table below. The largest regional outflow was from Canada at $20 million.
Along with the increased inflow of cryptocurrency investment funds, there was also news that the Wisconsin State Investment Commission disclosed exposure to Bitcoin spot investment.
In a 3F filing with the U.S. Securities and Exchange Commission (SEC) on May 14, the board of directors disclosed that it purchased 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT) in the first quarter of this year.
Read more: Wisconsin State Reports $164 Million Investment in Spot Bitcoin ETFs
The investment committee, also known as SWIB, said it purchased approximately $64 million worth of Grayscale Bitcoin Trust (GBTC) shares.
Asset manager MacroScope noted that the board’s filing was one of the most significant disclosures about Bitcoin to date and will be closely analyzed by other investment committees as well.
Eric Balchunas, senior ETF analyst at Bloomberg, said boardroom interest in spot Bitcoin ETFs appears to have emerged sooner than expected.
“Wow, the National Pension Service bought $IBIT in the first quarter. Typically you don’t get these large institutions in a 13F for a year or so (when the ETF gets more liquidity), but as we’ve seen, this is not a typical launch.”
Balchunas believes this is a good sign for the market, adding, “I expect more because institutions tend to move in packs.”
This disclosure marks SWIB’s significant move into the Wisconsin Investment Board’s digital asset markets. Spot Bitcoin ETFs provide investors with exposure to Bitcoin without the need to own the cryptocurrency directly. This move by the Wisconsin Investment Commission could potentially signal increased adoption of cryptocurrency investment products among traditional financial firms.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.