Inflows into cryptocurrency investment funds rose sharply last week, with Ether (ETH) products breaking a nine-week spell of outflows in the latest sign that institutional managers were re-accumulating assets. 

Digital asset investment products registered $75.3 million worth of cumulative inflows last week, data from CoinShares revealed Monday. Bitcoin (BTC) investment products saw $25.1 million worth of inflows, while Ether products attracted $20.9 million worth of capital.

Positive inflows were also reported for multi-asset funds with exposure to several cryptocurrencies. Solana (SOL), Polkadot (DOT) and XRP products were also net positive for the week.

Crypto asset flows have now risen for four consecutive weeks, offering signs that the massive drawdowns of late 2021 were beginning to reverse course. Over the four-week stretch, crypto funds collected $209 million.

Institutional managers reduced their exposure to cryptocurrency products at the end of 2021, possibly to book profits before year’s end and also to ride out extreme market volatility. Bitcoin’s Fear & Greed Index, which gauges market sentiment, plunged to “extreme fear” in early January. The index has stabilized in recent weeks, with the latest reading showing that the market has exited the extreme fear stage.

While analysts remain at odds about whether the market has formed a definitive bottom or…

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.