Crypto sees largest weekly institutional investment in 2022 with $193M inflows
The price of Bitcoin has risen by 14 percent, after months of fluctuating investment and price changes due to global uncertainty and the American Fed's decision to increase interest rates.
After two weeks of institutional outflows and fluctuating Bitcoin prices, last week saw institutional investors double down on the decentralised ecosystem with their largest combined weekly net investments in 2022.
Led by investment entities ProShares and the ETC Group who invested $48.3 million each in net inflows this week, the total net investment for the week, according to a CoinShares report, was $193 million.
This comes on the back of two weeks of investment outflows by the same investment firms tracked by CoinShares. The change in trend provides a psychological boost to the cryptocurrency ecosystem that has been rocked by the conflict in Ukraine, increasing crypto trading restrictions globally, and the American Fed's decision to increase interest rates recently.
However, even as institutional investors continue to increase spending in the cryptocurrency ecosystem, they are severely outmatched by the main Web 3.0 players.
Terra, a new stablecoin that has increased in popularity in 2022, announced that they bought $135 million in Bitcoin on Monday and over a billion dollars throughout the course of the year to secure the valuation of their UST coin.
While the last week has shown an uptick in Bitcoin's valuation with a 14 percent increase in its price after weeks of stagnation and fluctuation under the $40,000 mark, the real winner from last week's institutional investments was Solana.
Institutions investors put a net $87.1 million in Solana in the last week alone, bringing the entire institutional assets under management invested in the coin to $241 million.
Edited by Affirunisa Kankudti
