Minor Inflows Into Crypto Funds Suggest Investors Are Profiting From The Dip

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Crypto funds saw net inflows of $14.4 million in the week to Jan. 21, breaking the previous five-week outflow streak, suggesting investors view the current price level as an opportunity of purchase. In the previous five-week period, net outflows were $532 million.

According to digital asset manager CoinShares, the inflows came later last week during a period of significant price weakness. During the period, bitcoin fell to $38,000, while Ethereum tested the level below $3,000.

The world’s largest crypto asset, bitcoin, saw net inflows totaling $14 million last week, after suffering outflows of $317 million, representing 1% of total assets under management (AUM), in during the previous five weeks. On the other hand, Ethereum continues to see outflows, with $16 million in outflows last week.

“The current round of seven-week outflows now totals $245 million, or 2% of total AUM, highlighting that much of the recent decline among investors has been focused on Ethereum rather than Bitcoin. “, CoinShares said in a note.

Among altcoins, a cumulative term to define cryptocurrencies that came after bitcoin, cardano, polkadot, and solana saw net inflows totaling $1.5 million, $1.5 million, and $1.4 million. dollars, respectively.

Investors continued to add multi-asset investment products to positions with $8 million last week.

According to CoinShares, the total AUM of crypto funds is now $51 billion, the lowest since early August 2021, after falling 41% from the November 2021 peak of $86 billion.

In terms of individual crypto fund providers, the world’s largest digital asset manager, Grayscale had a total AUM of $35.26 billion, followed by CoinShares at $3.73 billion and 3iQ with an AUM of 2 .02 billion.

In the recent past, crypto assets have remained depressed in direct response to Federal Open Market Committee (FOMC) minutes, which revealed the US Federal Reserve’s concerns about rising inflation.

In response, the overall market capitalization of crypto assets has fallen from a peak of over $3 trillion in November 2021 to less than $2 trillion currently.

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