Institutional investors are waiting on the sidelines for more crypto regulations, according to the chief strategy officer of market intelligence firm CoinShares.

Bitcoin (CRYPTO: BTC) has surged over 14% this week and hovering around $44,000, a stark contrast to its position in January.

This upswing, termed by Demirors as the "most hated rally," in an interview with CNBC, comes amidst a backdrop of market disasters, bankruptcies, and regulatory challenges in 2022.

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"The big traders, the macro desks, they haven't started buying yet," Demirors notes, indicating a significant gap between retail enthusiasm and institutional action.

This hesitance is seen as a cautious approach, waiting for more stability and clarity in the market.

CoinShares' latest research report indicates that there have been inflows totaling $43 million into digital asset investment products, marking the 11th consecutive week of such inflows.

However, there's a notable decline compared to previous weeks.

Regionally, Europe leads with $43 million in inflows, while the U.S. trails with $14 million, half of which is into short positions.

This trend suggests a growing skepticism about the sustainability of the current price rise.

Bitcoin remains the primary focus, with $20 million in inflows, bringing the year-to-date total to $1.7 billion.

Interestingly, Ethereum (CRYPTO: ETH) has reversed its trend, now showing six weeks of inflows totaling $10 million.

The altcoin market, with Solana (CRYPTO: SOL) and Avalanche (CRYPTO: AVAX), continues to attract investor interest, with inflows of $3 million and $2 million, respectively.

Meanwhile, blockchain equities have seen their largest weekly inflows on record at $126 million, indicating a broadening interest in the crypto-related sector beyond just digital currencies.

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