It seems that institutional investors are still interested in cryptocurrencies, and more money is coming from them to the ecosystem. These kinds of investors always have big effects on the market and also can change the atmosphere to a better situation.
The latest report from CoinShares shows that there is still an appetite for buying BTC and altcoins from the institutional sector, and more money is inflowing. The report claims $90m inflows in the week ending October 1st. Although it’s not that much compared to the first weeks of 2020, it shows a considerable interest from big players.
Effect on the Market
Institutional investors affect the cryptocurrency market in various ways. When big companies announce their plans to invest in digital assets, especially BTC and big altcoins, it means a lot for other investors. They somehow trust this market more and believe in the potentials of buying and holding cryptocurrencies.
As a result, more buyers come to the market, and it helps it grow faster. Besides, these investors coming to the market shows a sign for regulators. They will know that this market has demand, and if the regulation follows the interest, they can benefit, too.
Some people thought that institutional interest in cryptocurrencies decreased after some corrections in the market. But the latest report from CoinShares says a considerable amount of money is still coming from this sector. According to the report, an inflow of $90m happened in the last week in digital investment products. It resulted in a seven-week consecutive pattern that totally bright $411m to the market.
BTC experienced the most investment moves with a $69m inflow in the last week. Ethereum sits in second place with an inflow of $20m. But the improving inflows aren’t affecting the volumes in a positive way yet. The volumes are still at $4.2bn compared to 8.4b in May. According to the report:
“It was a mixed week for other altcoins, with Polkadot, Tezos, and Binance seeing minor outflows totaling US$0.8m each. While Cardano and Solana saw minor inflows totaling US$1.1m and US$0.7m respectively.”
Grayscale is one of the most famous institutional investors in the cryptocurrency market. But there are other big players like CoinShares, 3iQ, and 21Shares in the list, too. Anyway, all of these players can encourage newcomers and interested users to buy more cryptocurrency that results in good growth for the whole industry.