The cryptocurrency inflows took a major hit last week as the price of leading digital assets dropped sharply in the last 7 days. Despite a dip in overall inflows in crypto-related investment products, Polkadot reported a surge in weekly inflows.
According to the latest weekly cryptocurrency inflows report published by CoinShares, the crypto investment products saw a total of $395 million inflows last week, which is down nearly 20% compared to $492 million in the third week of February.
Polkadot saw $7 million in inflows last week. The world’s second-largest cryptocurrency, Ethereum attracted nearly $91 million during the last week of February. Despite the reason that no major outflows were reported last week, institutional investors are becoming hesitant.
“Bitcoin saw inflows of $288 million last week but on a proportional market capitalization basis, Ethereum and Polkadot saw greater inflows. Minor inflows of around $3.7 million were also reported in Binance. Investors became hesitant during the week. As the week progressed, daily cryptocurrency inflows fell from $100 million on Monday to nearly $12 million on Friday,” the report mentioned.
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As of now, quarterly inflows are just 4% lower than the record inflows of $4 billion in Q4 of 2020.
Institutional Interest in Cryptocurrency Assets
Due to a significant jump in the price of digital assets, institutional investors are now taking interest in different cryptocurrencies. Polkadot, Ethereum and several other cryptocurrency assets reported a surge in institutional inflows during the last few months. Despite the dominant status of Bitcoin in the crypto market, Ethereum, Polkadot, Binance Coin, Litecoin and Stellar have been able to attract large institutional investments since the start of 2021. Grayscale, the world’s largest crypto asset manager, now has more than $36 billion in digital assets under management.
CoinShares mentioned in the report that the total cryptocurrency assets under management jumped from $24 billion to nearly $45 billion in the first two months of 2021. The crypto market currently has a market cap of more than $1.5 trillion.