From November 30 to December 6, institutional investors invested $429 million in cryptocurrencies. This is the second-largest inflow of institutional money in the history of the cryptocurrency market.
The digital asset management company CoinShares published a report according to which the inflow of institutional money into the crypto market from November 30 to December 6 was $429 million. The all-time high inflow of $468 million of institutional money was recorded three weeks earlier. The most popular cryptocurrencies among institutions are bitcoin and Ethereum. They account for almost all of the invested funds. $334 million was invested in bitcoin-related products, and $87 million, or 20% of the total, was invested in Ethereum. Previously, Ethereum’s share was only 14%. The rise in institutional investment in Ethereum appears to be due to greater clarity on Ethereum update future.
Over the past four weeks, institutions invested $1.4 billion in bitcoin alone. This is happening against the backdrop of an outflow of institutional money from gold. Over the past four weeks, the outflow from gold-focused funds amounted to $9.2 billion, according to the report of CoinShares.
At the end of 2019, the volume of assets managed by CoinShares, Grayscale Investments, 21Shares, WisdomTree, ETC Issuance and other companies amounted to $2.57 billion. Up to date, this indicator grew 5.8 fold.
We believe that investors are choosing to invest in bitcoin to help diversify the limited supply component of their portfolios, CoinShares analysts wrote.
Wells Fargo, one of the largest financial holdings in the United States, called bitcoin an effective investment asset, which over time will cope with high volatility and become a worthy investment tool.