According to a recent report by asset manager CoinShares, the total outflow of $6.5 million from crypto funds last week signified a reversal in trend following four weeks of heavy inflows.
However, it is not all gloomy considering that the outflow of $6.5 million is minor compared to the $742 million of inflows in total from the prior four weeks. As such, that would suggest that investors are still very much interested in the space despite this negative reversal.
Bitcoin Investors Seem To Be Cooling-Off
Bitcoin remains the primary focus, with the first and most renowned cryptocurrency garnering the most attention from institutional investors among all other cryptocurrencies. However, this recent paper by CoinShares suggests that these investors may be cooling off their interest in the crypto token.
Bitcoin recently saw a total outflow of $13 million, while short bitcoin investment products “saw outflows for the 13th consecutive week totaling $5.5 million.”
This negative sentiment could be attributed to the regulatory uncertainty regarding crypto in the US and the SEC’s continual clampdown on crypto-related projects.
However, there is good news as some parts of the paper will suggest that these investors aren’t necessarily pulling the plug on crypto investments but rather diversifying into other tokens, and if that is so, then the biggest beneficiary is Ethereum
A Cool-Off Doesn’t Mean A Loss Of Interest In Crypto
Ethereum seems to be enjoying a more positive outlook in the world of institutional investment, with ETH-related funds seeing $6.6 million in inflows last week. According to CoinShares, this puts Ethereum at the top of the leaderboard for last week and suggests that sentiments that have been poor this year “is slowly beginning to turn around.”
Other altcoins aren’t left out and another token that has been gaining the attention of institutional investors so far is XRP. Ripple-based funds have reportedly seen $6.8 million in inflows over the last 11 weeks.
This, for one, is great news, especially when one considers that Ripple already had the attention of investors even before its ‘partial victory’ against the SEC, although there is no doubt that its victory was a confidence booster for these investors.
In addition to this, “Solana, Uniswap, and Polygon saw inflows totaling $1.1m, $0.7m, and $0.7m, respectively,” CoinShares noted.
Another highlight from the report was that the North American market saw 99% of outflows totaling $21 million, with some of this money moving into Europe. However, Switzerland and Germany saw $12 million and $1.9 million inflows, respectively.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments