Institutional investments are pouring into the crypto market at a faster rate than retail investments, with data supporting the recent bitcoin rally. Last week, digital asset investment products saw inflows of $1.2 billion, marking the fourth consecutive week of gains, according to CoinShares data. Bitcoin alone attracted $933 million, bringing the year-to-date total to $4 billion, while Ether saw $192 million in inflows for the third consecutive week above $190 million.
Meanwhile, blockchain equity ETFs are gaining traction, with $617 million in inflows over the past three weeks, driven by demand for indirect exposure to the crypto sector. This shift suggests that investors who cannot or will not hold bitcoin directly are turning to equity wrappers around the sector.
Bitcoin briefly reached $79,399 before retreating to $77,705, and the upcoming week will test whether institutional flows can absorb selling pressure and push the price above $80,000. The performance of megacap tech companies, including Alphabet, Microsoft, Amazon, Meta, and Apple, will also impact the crypto market, as strong earnings could extend the crypto inflows and propel bitcoin above $80,000, while disappointing results could lead to a decline in prices.