In the first three days of the week, global investment products in cryptocurrency saw inflows of $1.65 billion. Nearly $1 billion of this amount was directed towards Bitcoin, indicating a renewed interest from institutional investors, according to a report by CoinShares.
Additionally, investors allocated $478 million to Ethereum.
This marks the second consecutive week of inflows, following a previous week that saw a remarkable $2.94 billion in investments. This figure represents the largest weekly inflow since the beginning of the year.
Analysts have linked the surge in demand to the uncertainty surrounding the monetary policy of the Federal Reserve. Amid mixed economic signals, investors are increasingly seeking alternative assets.
Bitcoin Surpasses 200-Day Moving Average
The inflows coincided with Bitcoin's recovery, as the cryptocurrency closed at approximately $78,500 on August 26, having briefly exceeded $81,000 the day before.
Furthermore, Bitcoin has reclaimed its position above the 200-day moving average for the first time in 270 trading days. This indicator is frequently used to assess the long-term market trend.
CoinShares noted that these inflows alone are likely to sustain the upward momentum. The movement of capital suggests that institutional demand for digital assets is on the rise again following a recent period of weakness.
US Investors Drive Most of the Demand
The majority of the inflows originated from American investors, who accounted for about $1.5 billion of the $1.65 billion total. Germany and Switzerland also demonstrated significant inflows.
The total assets under management in crypto investment products have reached approximately $155 billion. For the first time this year, the sector has seen a positive net flow of around $3.4 billion since the beginning of 2023.
Aside from Bitcoin and Ethereum, investors also added positions in altcoins, with products based on XRP attracting $80.5 million, Solana $62.9 million, and Hyperliquid $39 million.
It is worth noting that inflows into ETFs and a decline in US Treasury yields are fueling demand for Bitcoin following its recent price increase, as concluded by XWIN Japan.