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Bitcoin Sees Massive Inflows from Institutions, Gold Sees Mammoth Outflows

Tue, 8/12/2020 - 6:16
Bitcoin Sees Massive Inflows from Institutions, Gold Sees Mammoth Outflows
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According to CoinShares data published by international news agency Reuters, $1.4 billion of institutional money has flown into Bitcoin-focused investment products over the past few weeks.

By contrast, gold has seen massive outflows of $9.2 billion during the same time frame as investors seem to be becoming increasingly keen on the digital iteration of the yellow metal.   

Fund flows
Image by @CoinSharesCo

Crypto funds’ second best week on record 

Overall, CoinShares reports that cryptocurrency funds managed to raise $429 million from institutions last week when Bitcoin climbed to a new all-time high of $19,918 on Dec. 1.  

In the meantime, the total value of digital assets managed by crypto firms has skyrocketed to a staggering $15 billion.    

Grayscale Investments alone has $12.7 billion worth of AUM, according to its Dec. 7 update.   

CoinShares’s investment strategist James Butterfill claims that Bitcoin is no longer dismissed as a purely speculative play:        
On an anecdotal level, based on our client conversations over the course of 2020, we have seen a decisive shift from enquiries of a speculative nature to those that begin with comments such as, ‘bitcoin is here to stay, please help us understand it.

JPMorgan Says Institutions Ditching Gold ETFs for Bitcoin

Sorry, SEC, a Bitcoin ETF is already here

In other news, business intelligence firm MicroStrategy is turning into a de facto Bitcoin ETF even when the SEC continues kicking the can down the road. Yesterday, the firm announced its plan to conduct a $400 million offering of convertible senior notes and use the proceeds for expanding its cryptocurrency reserves.

After acquiring an additional $50 million worth of Bitcoin last week, MicroStrategy now holds 40,824 BTC (or $784 million at the time of writing). 


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