Bitcoin Continues to be the Main Focus for Investors as It Hits Yearly Highs: CoinShares

According to a recent report by CoinShares, Bitcoin (BTC) has remained the primary focus for institutional investors in the past two weeks, as the cryptocurrency continues to achieve new price highs in 2023.

In the report, CoinShares’ Head of Research, James Butterfill, highlighted that Bitcoin-related products received inflows of $310.6 million during the two-week period, representing the majority of inflows into crypto products.

Butterfill noted, “Bitcoin remained the primary focus of investors […] with the last 2 weeks inflows representing 98% of all digital asset flows.”

This surge in inflows marks a significant reversal from the nine consecutive weeks of outflows that preceded it. However, short Bitcoin products experienced a minor outflow of $0.9 million in the past week.

Interestingly, this is the second time this year that Bitcoin products have accounted for 98% of inflows into cryptocurrency investment products. The trend coincides with the recent surge in Bitcoin’s price and market dominance.

Much of this price surge has been attributed to the filing of BlackRock’s spot Bitcoin ETF application on June 15, followed by similar filings from prominent investment firms like Fidelity, Invesco, Wisdom Tree, and Valkyrie.

Since the filing, the price of Bitcoin has risen by 25.2% and currently stands at $31,131. Bitcoin’s dominance, which measures its market capitalization relative to the total market cap of all cryptocurrencies, has reached 51.46%, according to available data.

In contrast, investment products focused on Ethereum saw inflows of $2.7 million last week, marking the second consecutive week of inflows after a period of outflows.

Fireblocks CEO Michael Shaulov commented on the interest from institutional investors, stating that core assets like Bitcoin and Ethereum have garnered significant attention, while interest in alternative cryptocurrencies has been relatively lower.

Shaulov added, “The narrative around Ethereum is pretty much the understanding that future ecosystems of tokenization are likely to be EVM-based. And if they’re EVM-based, then Ethereum is going to play out as utility.”

Regarding Bitcoin, Shaulov noted that the narrative has been less specific, but most investors recognize the need to hold the cryptocurrency in their portfolios.

Overall, Bitcoin’s continued price surge and dominance have solidified its position as the preferred choice for institutional investors. While other cryptocurrencies attract attention, Bitcoin remains at the forefront due to its established reputation and utility in the digital asset landscape.

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