Institutional investors have been accessing Bitcoin via trusts and funds. They have used funds such as the Grayscale Bitcoin Trust (GBTC) and others to gain exposure to the leading cryptocurrency. However, after investing massively in recent months, cryptocurrency funds are seeing low weekly investments at the moment.
Crypto fund inflow is declining
CoinShares, in its weekly report, revealed that cryptocurrency fund inflows are down by nearly 60% over the past week. Investors allocated only $99 million to crypto-asset investment products last week, taking the total investment product assets under management to $57 billion.
According to the report, since the February highs and massive volatility, there has been a steady decline in appetite amongst investors. The declining appetite is mostly from the United States, with European and Canadian investors maintaining their investment levels.
CoinShares also added that due to the decrease in investment, the Bitcoin investment product trading volumes are down to $713 million per day from $1.1 billion. The report added that the decrease in trading volume only affects the investment products as the Bitcoin trading volume on the trusted exchanges remains above $11 billion.
Bitcoin investment products take the lead
Most of the investors last week focused on Bitcoin. Out of the $99 million invested in cryptocurrency investment products, $85 million went into Bitcoin. Ethereum (ETH) and Polkadot (DOT) came second and third, after raising $8 million and $2 million, respectively. There is little activity in other coins, including the Binance Coin (BNB), XRP, and Bitcoin Cash (BCH).
Bitcoin and the other cryptocurrencies have been struggling in recent days. The leading cryptocurrency plunged below the $55,000 mark yesterday after failing to reach $60,000. The bears control the market as Bitcoin’s price drops by 5% over the past 24 hours. However, it is trading close to the $55,000 mark again.