Cryptocurrency assets held by institutional managers rose for the fifth week in a row, a sign that market participants were once again bullish on Bitcoin (BTC) and major altcoins.
Investment flows in crypto products totaled $ 42 million in the week ended September 19, with Bitcoin funds registering inflows of $ 15 million, according to digital asset manager CoinShares. This is only the third time in 16 weeks that BTC investment products have seen positive flows.
All major assets saw a weekly increase, with investors buying $ 6.6 million in Ether (ETH) products and $ 3.7 million in multi-asset funds. Investors also allocated $ 4.8 million to Solana (SOL), ignoring a denial of service outage earlier this week due to network congestion.
In terms of actual revenue, 21Shares recorded the biggest weekly inflows at $ 28 million. The provider of exchange-traded crypto products now has $ 1.87 billion in assets under management. Grayscale remains the largest manager of crypto assets, with $ 43.177 billion in total assets.
Fund managers bought cryptos in tune with a large market rally that began in late July. Crypto markets peaked above $ 2.2 trillion last week after plunging to about half that amount earlier in mid-July. However, on Monday all major crypto assets posted heavy losses as Chinese news from Evergrande reversed risk sentiment.
Related: Bitcoin rebound levels extend to $ 36,000 with bulls unchanged by 8% BTC price drop
Institutional investors have emerged as significant players in the cryptocurrency market, a testament to the growing acceptance of digital assets by the general public. Some of the biggest crypto asset managers told TBEN earlier this year that investing in digital assets no longer carries the same level of career risk as before, which means more financial advisors and managers assets are likely to enter the market. This was corroborated by a recent survey from London-based cryptocurrency fund Nickel Digital Asset Management, which found that most hedge fund executives have already bought cryptocurrency.