As global markets plummeted amongst the Ukraine war and rising oil prices, institutional investors continue to have faith in digital finance. Funds, including Greyscale and CoinShares XBT among others, invested $127 million in cryptocurrencies in the week between February 1 and 6.
According to the weekly report by CoinShares, Bitcoin was a particularly popular investment as it saw inflows of $95 million in the week. This marks its highest week of investment in 2022, with the last time institutional investors showed this much trust in it was in December 2021.
Image source: unsplash.com
This was reflected in Bitcoin's price, as it jumped from $37,717 on 27 February to a high of $44,404 last week. Bitcoin continues to constitute the majority of fund investments, with over 66 percent of institutional assets under management retained in the oldest cryptocurrency in the world.
Meanwhile, Ethereum also saw inflows of $24.7 million last week, although popular alternate coins like Solana, Polkadot, and Binance coin saw net outflows last week.
As Europe continues to struggle with the war in Ukraine, European institutional investors actually withdrew $24 million in assets over the last seven days. This was made up by an inflow windfall of $151 million by North American investors who clearly see the situation as a market dip.
Edited by Megha Reddy