Institutional investment in bitcoin and cryptocurrencies rose $109 million in the past week, despite weak prices and the negative impact of the conflict in Eastern Europe. The information comes from the latest report by CoinShares, the largest cryptocurrency fund manager in Europe.
The report highlights that this is the fifth week of incoming capital flows to cryptocurrencies, after three weeks in which BTC sales by investors predominated. So far in the month of February, institutional investments in cryptocurrencies total USD 259.8 million, highlights the report.
Bitcoin attracted investments of USD 89 million in the last week, the highest since December 2021, to reach a total of USD 221 million in the last five weeks.
Funds and ETFs dominate institutional investment in bitcoin
Cryptocurrency mutual funds are the dominant sector in institutional investment in bitcoin. These currently have an accumulated total of 813,906 BTC, which corresponds to USD 31,630 million at the current price, which which represents 53% of institutional investmentsaccording to bitcointreasuries.org.
The chart below shows the top five bitcoin pools, by accumulated BTC. Grayscale’s dominant position is appreciated, with 643,572 BTC, with its bitcoin fund (GBTC), which has 79% of the total accumulated by the funds.
As can be seen in the table, only two of these investment instruments are bitcoin exchange-traded funds (ETFs), both launched in Canada in February 2021, as reported by CriptoNoticias. At the end of last October, the first bitcoin ETF was launched in the United States, a fact that we reported in this medium. Unlike Canadian ETFs, which are backed directly in bitcoin, the US-launched ETF is based on futures contracts.
Graayscale has already applied to the Securities and Exchange Commission (SEC) to convert its GBTC fund to an ETF, as reported by CriptoNoticias, which would allow it to attract more investors, according to the company. The signing began this Tuesday, February 22 a bell to encourage its investors to apply to the SEC for the conversion of their GBTC fund to an ETF.