Bitcoin Institutional Sentiment Turns Bullish, But Inflows Dominated By Cardano and Solana

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Institutional investors with long exposure to Bitcoin hit a record high of $ 165 million. Net exposure to Bitcoin for institutions turned positive for the first time since the second quarter of 2021. Despite the recent retracement, the data suggests that the major cryptocurrency may be waiting for further upward price movements.

Data from Arcane Research suggests that institutions are now becoming bullish on Bitcoin, as the major cryptocurrency has recovered from lows recorded in recent months. Although the flagship cryptocurrency is returning from recent highs, renewed positive sentiment from asset managers means there may be strong conviction for further gains for BTC.

Bitcoin Institutional Open Interest Hits Record High

The open interest of institutional investors in Bitcoin on the Chicago Mercantile Exchange (CME) was net positive throughout August, according to Arcane Research. Net exposure was the highest long exposure at $ 91.6 million seen among asset managers since the start of this year.

Bitcoin’s open interest with institutional long positions also hit an all-time high at $ 165.7 million, indicating that asset managers believe the price of Bitcoin still has room to rise.

Looking at the trend in 2020, institutions were also clear since recovering from the Bitcoin crash in March as the bull market was in anticipation.

Arcane Research has suggested Bitcoin sentiment among asset managers has turned bullish, with short positions at $ 74.1 million, well below the peak seen in May of this year.

However, the research firm also suggested that the price of Bitcoin at $ 50,000 would be a difficult level to break above given the trading volume for the major cryptocurrency on the decline.

Bitcoin investment products also saw a week of releases, while altcoins now represent 32% of total crypto assets under management, according to a CoinShares report. Ethereum’s killer protocols, particularly Cardano and Solana, dominated the rally as sentiment improved in altcoins rather than the flagship cryptocurrency.

Cardano posted inflows of $ 10.1 million last week, the largest on record, bringing its market share to 0.15%.

Solana recorded inflows of $ 2.7 million last week, surpassing Bitcoin Cash in AUM terms, while Polkadot recorded inflows of $ 1.5 million.

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