The worst of the crypto market fall may have passed, according to CoinShares statistics, as institutions bought the drop.
Last week, inflows into cryptocurrency investment funds spiked, with Ether (ETH) products breaking a nine-week streak of withdrawals, the latest indicator that institutional investors are re-stocking their portfolios.
According to CoinShares data released Monday, digital asset investment products received $75.3 million in cumulative inflows last week. Inflows into Bitcoin (BTC) investment goods totaled $25.1 million, while Ether investment products received $20.9 million.
Multi-asset funds with exposure to numerous cryptocurrencies also saw positive inflows. The products of Solana (SOL), Polkadot (DOT), and Ripple (XRP) were also positive for the week.
Crypto asset flows have now increased for four weeks in a row, indicating that the enormous drawdowns of late 2021 are starting to reverse. Crypto funds made a total of $209 million throughout the four-week period.
At the end of 2021, institutional investors lowered their exposure to cryptocurrency products, possibly to book profits before the year’s conclusion and also to weather high market volatility. In early January, Bitcoin’s Fear & Greed Index, which measures market sentiment, fell to “severe fear.” In recent weeks, the Index has stabilised, with the most recent value indicating that the market has exited the acute anxiety stage.
While pundits disagree on whether the market has reached a bottom or whether Bitcoin and Ether will retest their 2022 lows, CoinShares’ inflow data is a reliable measure of institutional investor confidence.
02/11/22 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) February 11, 2022
Grayscale, the world’s largest crypto asset manager, is looking to turn its flagship GBTC Bitcoin product into an exchange-traded fund, with $37.6 billion in assets under management (ETF). The US Securities and Exchange Commission (SEC) postponed its decision on Grayscale’s Bitcoin ETF proposal for a second time on Feb. 4, allowing for more public comment.
Meanwhile, huge inflows continue to pour into the Purpose Bitcoin ETF in Canada, indicating robust investor demand for a spot product.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.