Author: Sam Bourgi
Compiled by: TechFlow Deep Tide
Deep Tide Introduction: The latest quarterly survey from CoinShares shows that among 26 institutional investors managing a combined $1.3 trillion in assets, 32% already hold BTC and 25% have allocated to ETH. The proportion of digital asset allocation remains low at only about 1%, but fund inflows have been positive for four consecutive weeks, with spot BTC ETFs seeing nearly $1 billion in net inflows in a single week in early May. Improved regulatory friendliness and the opening of ETF channels are the core drivers, while internal compliance restrictions remain the biggest obstacle.
Fund managers are embracing digital assets again. The latest CoinShares survey shows that Bitcoin continues to dominate institutional allocation preferences, and overall crypto market sentiment is also warming.
This April survey covered 26 institutional investors with a combined AUM of $1.3 trillion. The allocation of digital assets in investment portfolios remains low, at about 1%. CoinShares describes this as a "typical entry-level position," corresponding to the current risk-off market environment.
James Butterfill, Head of Research at CoinShares, wrote in the report: "Bitcoin remains the digital asset with the most compelling growth prospects." Sentiment towards ETH and SOL has also improved moderately compared to previous quarters.
Survey data: 32% of respondents have already invested in BTC, and 25% have allocated to ETH.
Institutional investors are gradually increasing their positions, driven by factors such as improving market sentiment, rising ETF adoption, and a more friendly regulatory environment. Meanwhile, respondents cited internal compliance restrictions and regulatory uncertainty as the primary obstacles to broader adoption. The survey also noted a trend: funds are flowing from "legacy altcoins" to newer DeFi protocols and emerging blockchain sectors.
Caption: Fund managers believe Bitcoin has the strongest growth prospects among digital assets, followed by ETH and SOL
Source:CoinShares
Sustained Inflows, Sentiment Indicators Warm Across the Board
The survey's optimistic tone aligns with broader institutional flow data. CoinShares data shows that digital asset investment products have recorded net inflows for multiple consecutive weeks, primarily driven by Bitcoin demand.
Crypto ETPs attracted $1.2 billion in inflows in the four weeks ending April 27, marking the fourth consecutive positive week, with cumulative inflows of $3.9 billion over those four weeks.
This momentum continued into early May. SoSoValue data shows that US spot Bitcoin ETFs recorded nearly $1 billion in net inflows this week, with BTC prices climbing back above $80,000.
Caption: Bitcoin ETF inflows have continued to rise since last Friday
Source: SoSoValue
The inflow trend also aligns with a joint survey by Coinbase and EY-Parthenon: 73% of institutional investors plan to increase their digital asset exposure this year, with most expecting crypto asset prices to rise over the next 12 months.
The launch of US spot Bitcoin ETFs in January 2024 is widely regarded as a turning point for institutional adoption. The ETF structure reduces operational friction for institutions, providing regulated Bitcoin exposure without the need for direct digital asset custody.
