Bitcoin, the largest cryptocurrency, was trading as low as $29,800. Despite the bitcoin (BTC) price correction for the month of May, institutional investors are still confident in the cryptocurrency.
The bitcoin ETF, launched in February 2021, has seen continuous overflow over the past five days, with fund holdings rising to 43,701.7 BTC, a record high. glassnodeAs reported on Tuesday by Jan Wustenfeld.
A recent analysis showed that digital asset investment products contributed $87 million to cumulative inflows last week, while bitcoin alone contributed $69 million in total. This influx in digital assets makes it seem like buyers are again turning to bitcoin ETFs to take advantage of the lower price to align with the broader short-term trend of institutional buyers investing in the crypto market. Furthermore, Canadians were seen buying 2,006 BTC on Thursday and 2,780 BTC on Tuesday.
Shortly after the previous short-term investment predictions, the crypto market resulted in an outflow of digital assets due to last month’s market crash. Which reportedly saw a total outflow of $141 million from institutional funds in the last week of May, the highest outflow recorded since July 2021.
Furthermore, the CoinShares report still shows that the total assets under management (AUM) metric is currently at its lowest level since mid-2021. Noting that some investors are still waiting for a re-inflow into their digital asset fund wallets.
And market analysts still look bearish in short term trading with minimum price predictions of 14,000 and call the recent surge a bull trap. Despite a portion of BTC positions being underwater, data shows that long-term holders continue to hoard bitcoins in their current range. The collapse in the crypto market and UST/LUNA may discourage some retail entrants, but young investors are still fascinated by crypto tech.