Cryptocurrency assets held by institutional managers increased for a fifth consecutive week, indicating that market participants have once again turned to Bitcoin (BTC) and leading altcoins.
In terms of actual products, 21Shares registered the largest weekly inflow of $28 million. This physically backed cryptocurrency exchange product provider currently has $1.87 billion in assets under management. Grayscale remains the single largest manager of cryptocurrency assets, with $43.177 billion in total assets.
Fund managers have been buying cryptocurrencies in parallel with the broad market recovery that began in late July. Cryptocurrency markets peaked above $2.2 trillion last week after falling to about half that amount earlier in mid-July. However, by Monday, all major cryptocurrency assets had seen large losses as news of China's Evergrande shook risk sentiment.
Investment flows into cryptocurrency products totaled $42 million in the week ending Sept. 19, with bitcoin funds seeing an inflow of $15 million, according to digital asset manager CoinShares. This is only the third time in 16 weeks that BTC investment products have seen positive inflows.
All major assets saw weekly growth, with investors buying Ether (ETH)-based products worth $6.6 million and multi-asset funds worth $3.7 million. Investors also put $4.8 million into Solana (SOL), undeterred by a denial-of-service outage earlier this week due to network congestion.
