A recent analysis of inflows into U.S.-based crypto funds shows that institutional investors are still bullish, despite the recent market downturn. According to data gathered by fund manager, CoinShares, crypto funds received inflows worth $154 million last week, a slight increase to the $151 million recorded in the previous week.
Per the report, investors are increasing their exposure to Bitcoin in the wake of increased market volatility, with demand for altcoins dropping. The leading cryptocurrency received the largest inflow, $114 million during the period under consideration, bringing its total share of inflows to 67% over the last month amongst investment products.
Ethereum-focused funds received inflows totaling $14 million for last week, meaning that the second-largest crypto asset has received a total $80m in the past month. The so-called Ethereum ‘killer’ Solana has also caught the eye of investors, receiving a total of $43 million over the last month.
The number of inflows into crypto assets is noteworthy, seeing to the fact that investors are still pouring funds into the market despite the recent market correction that caused a correction in the prices of most cryptocurrencies.
Bitcoin, which earlier that day had raised the hopes of traders with its price at $60k, lost almost 2% during the first hour of the intraday session and dipped below $57k. The coin went down by another 4% and continued the dip.
However, like every market correction that comes with recovery, Bitcoin is currently at around $57k at the time of writing. Ethereum too, the second-largest coin by market cap, experienced the dip and went down to $4k but recovered with the price increasing a little.
Not minding the market correction, just like the positive investors that contributed to the high inflows, the president of El Salvador Nayib Bukele, announced during the country’s Bitcoin Week Conference that it will be building a bitcoin-powered city, rightly dubbed Bitcoin City. The Bitcoin City project will be funded initially by $1 billion worth of bitcoin bonds, and will be built at the base of the Conchagua volcano located in the eastern region of La Unión.