Following two weeks of institutional withdrawals and volatile Bitcoin prices, institutional crypto funds investors redoubled their commitment to the decentralized ecosystem last week, making their greatest cumulative weekly net investments since 2022.
According to a report, the overall net investment for the week was $193 million, led by institutional crypto funds investor companies ProShares and the ETC Group, which each invested $48.3 million in net inflows. This follows two weeks of investment outflows by the same CoinShares-tracked investment companies. The shift in trend is a psychological boost for the cryptocurrency ecosystem, which has been shaken by the situation in Ukraine, increased crypto trading regulations throughout the world, and the United States Federal Reserve’s recent decision to raise interest rates.
Institutional Crypto Funds Highest In 3 Months
Institutional investors, on the other hand, are substantially outmatched by the big Web 3.0 firms, even as they continue to grow their expenditure in the bitcoin ecosystem.
Terra, a new stablecoin that has grown in popularity in 2022, said on Monday that they purchased $135 million in Bitcoin on Monday and over a billion dollars during the year to ensure the value of their UST coin. While Bitcoin’s value has increased by 14% in the previous week following weeks of stasis and volatility below the $40,000 level, the true winner from last week’s institutional investments was Solana. In the previous week alone, institutional investors invested a net $87.1 million in Solana, increasing the total institutional assets under management invested in the currency to $241 million.
Other digital assets like Cardano and Polkadot gained popularity among institutional investors, in addition to record inflows in Solana. ADA and DOT investment products received $1.8 million and $1.2 million in institutional crypto funds, respectively. Last week, Ethereum received $10 million in inflows. With an almost 20% price drop in 2022, ETH remained one of the poorest performing digital currencies. The tendency was also visible in the institutional market.