Bullish sentiment surrounding crypto has not wavered despite the recent
market correction that saw Bitcoin fall to sub-$57,000 levels.
Institutional investors were unfazed by the recent correction in the
cryptocurrency markets, as digital asset funds dedicated to Bitcoin (BTC) and Ether (ETH) continued to grow, according to data from CoinShares.
Crypto
investment products, which include exchange-traded funds (ETFs), saw
weekly inflows totaling $154 million for the week ending Nov. 20,
according to CoinShares’ latest fund flows report. Like in previous
weeks, Bitcoin investment products attracted most of the inflows at
$114.4 million. Funds devoted to Ether saw weekly inflows of $12.6
million and multi-asset products registered $14.1 million in net
investments.
Year-to-date, institutional investors have allocated
over $6.6 billion to Bitcoin products, $1.17 billion to Ether products
and more than $9.2 billion to crypto as a whole.
Grayscale, which is the largest crypto asset manager, recorded $51.9 billion in assets under management as of Nov. 19.
October was a record-breaking month for Bitcoin funds
thanks in part to the approval of two futures-linked ETFs in the United
States. Institutional managers bought $2 billion worth of Bitcoin funds
over the course of the month as the BTC price reached new all-time
highs.
Although November has been less bullish for Bitcoin from a
price perspective, the latest funds flows data suggests that investors
are not concerned by the market correction. As Cointelegraph reported, Bitcoin touched a low of around $56,500
on Nov. 20 before correcting higher. The flagship cryptocurrency
remains vulnerable to another pullback in the short term as price
consolidates below $58,000.
According to a recent
tweet from crypto analyst TechDev, the 2021 bull market has been
lagging the 2017 cycle by five-to-eight days as of July. If the trend
continues, Bitcoin and the broader market could be poised for a breakout
higher in the medium term.
