According to a report released by CoinShares, cryptocurrency investment products attracted a total of $108 million in revenue in the first week of March, compared with $395 million in the last week of February. The report mentioned that weekly cryptocurrency inflows have fallen to the lowest level since January 2021.
Last week, Bitcoin, the world’s largest cryptocurrency, accounted for nearly 90% of the capital inflows. Ethereum and Polkadot attracted US$4 million and US$2 million, respectively. CoinShares added that despite the recent decline, the net inflow of cryptocurrencies this quarter has matched the total inflow in the fourth quarter of 2020.
“Last week showed that U.S. Treasury yields have risen significantly, reaching levels not seen since the beginning of 2021. The rise in yields has hit the gold market, while Bitcoin has significant resilience. Through our analysis, this is not enough. Oddly, the difference between Bitcoin and gold is that it tends to rise in an environment of rising bond yields, and there is evidence that Bitcoin is becoming a hedge against inflation,” CoinShares said.
Grayscale is still the largest institutional holder of Bitcoin, as crypto asset managers manage more than 655,000 BTC with a total value of nearly $34 billion. In addition, the company holds 3.17 million Ethereum, worth 5.68 billion U.S. dollars. Last week, “Financial Giants” reported on the growing interest of institutional investors in Polkadot. In the last week of February, institutional inflows of the cryptocurrency amounted to 7 million U.S. dollars. Grayscale announced in February that the company is considering some new digital assets to provide potential new products. With the company’s purchase of 137,947 Litecoin (LTC) and 23,605 Bitcoin Cash (BCH) in the past 30 days, the crypto asset manager has accelerated the accumulation of its alternative currency.
The company reported that in the past 24 hours, due to 111 BTC and 613 ETH leaving Grayscale, there has been a small outflow of Bitcoin and Ethereum.