Bitcoin (BTC) has surged past the $107,500 mark, achieving a record high of $109,588 as the new year kicks off. The momentum resembles the bullish trend seen in 2021, yet many altcoins struggle to gain traction. What new findings has the latest report on institutional engagement in cryptocurrency revealed?
What Do Institutional Trends Indicate?
CoinShares published a weekly report highlighting the activities of institutional investors. Their findings indicate that Bitcoin exchange-traded funds (ETFs) recorded more than $950 million in net inflows last week, reflecting a heightened risk appetite among institutional and professional investors, particularly following developments in the Trump administration.
Why Are Altcoins Lagging Behind?
Despite Bitcoin’s strong performance, altcoin popularity has not mirrored this success. Ethereum’s price has flatlined, though it did attract $246 million in institutional investments last week, offsetting some earlier outflows. However, overall sentiment remains low among altcoin investors.
- Bitcoin has seen a remarkable inflow of $2.2 billion in investment products over the past week, marking a significant uptick in interest.
- ETP volumes reached around $21 billion, with U.S. investors contributing a substantial $2 billion.
- Solana and XRP also recorded inflows, with Solana seeing $2.5 million and XRP gaining $31 million.
With bearish sentiment waning and investment in Bitcoin products thriving, the outlook seems increasingly positive for the leading cryptocurrency. However, the weak performance of altcoins suggests challenges ahead for those assets despite isolated successes.
