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Institutional Appetite Returns to Crypto as Markets Hit 18-Month High

Summary:
Bitcoin spot exchange-traded fund fervor has gripped institutional investors, which are piling funds back into crypto assets.  Institutional-grade crypto asset funds saw their largest weekly inflows since late 2021 last week, according to fund manager CoinShares.  A new record of inflows of 346 million was recorded for the week, the highest total observed in the past 9 weeks of inflows, it revealed.  Moreover, the global head of cryptocurrency products at CME, Giovanni Vicioso, commented on the return of institutional traders to crypto derivatives markets. The increase in volume and open interest is a “clear indication that institutions are moving into this space,” he said.  Institutional Appetite is Back According to CoinShares, the fresh inflow of funds has pushed total

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Bitcoin spot exchange-traded fund fervor has gripped institutional investors, which are piling funds back into crypto assets. 

Institutional-grade crypto asset funds saw their largest weekly inflows since late 2021 last week, according to fund manager CoinShares. 

A new record of inflows of 346 million was recorded for the week, the highest total observed in the past 9 weeks of inflows, it revealed. 

Moreover, the global head of cryptocurrency products at CME, Giovanni Vicioso, commented on the return of institutional traders to crypto derivatives markets

The increase in volume and open interest is a “clear indication that institutions are moving into this space,” he said. 

Institutional Appetite is Back

According to CoinShares, the fresh inflow of funds has pushed total assets under management to an 18-month high of $45.3 billion.

Bloomberg ETF analyst James Seyffart predicted that the spot Bitcoin funds will be approved during the second week of January.

Moreover, ETF Store President Nate Geraci commented that it “Will be mass chaos if SEC doesn’t allow GBTC to up list at the same time as other spot BTC ETFs launch…”

On Dec. 1 Bitcoin pioneer Anthony Pompliano commented on the rise in crypto-related equities. 

“First, investors were buying bitcoin, then Ether, and now a plethora of other crypto assets that push them further out on the risk curve,” he noted. 

Institutions usually lead retail when it comes to investing in crypto, and the past five weeks have seen yearly highs in weekly inflows. During the same period, spot market capitalization has gained around 24%. 

Crypto Market Outlook 

Crypto markets have had a solid week, with total capitalization rising to an 18-month high of $1.52 trillion on Dec. 2.

Bitcoin was leading the pack with a surge toward $40,000 on Saturday evening. Ethereum went well beyond $2,100, while SOL reaffirmed its position above $60. 

Chainlink (LINK) was the top high-cap mover with a 7% increase on the day to top $16 at the time of writing.

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