Inflows into cryptocurrency investment funds surged last week, with ethereum products breaking a nine-week-long streak of outflows, the latest sign of institutional managers re-accumulating assets.
According to data released by CoinShares on Monday, last week, digital asset investment products accumulated inflows worth 75.3 million U.S. dollars. Bitcoin investment products attracted inflows worth $25.1 million, while ethereum products attracted inflows worth $20.9 million.
Multi-asset funds investing in several cryptocurrencies also saw positive inflows. Solana (SOL), Polkadot (DOT) and Ripple (XRP) products also saw net inflows last week.
Crypto asset inflows have risen for four consecutive weeks, suggesting that the massive drawdown at the end of 2021 is beginning to reverse. Over a four-week period, the cryptocurrency fund amassed $209 million.
Institutional managers reduced their exposure to cryptocurrency products in late 2021, possibly to realize profits before the end of the year, or to ride out extreme volatility in the market. The Bitcoin Fear and Greed Index, which measures market sentiment, fell to "Extreme Fear" in early January. The index has stabilized in recent weeks, and the latest readings suggest the market has emerged from a phase of extreme fear.
Are we in the middle of a major bear market cycle?
Analyst @AriRudd points out that there are three indicators that could pull the price of Bitcoin down to $24K-27K.
— Cointelegraph (@Cointelegraph) February 14, 2022
While analysts remain divided on whether the market has formed a definitive bottom, or whether Bitcoin and Ethereum will retest their 2022 lows, CoinShares inflow data provides a good snapshot of institutional investor sentiment. barometer. As Cointelegraph reported, institutional demand for crypto assets has grown significantly over the past year and is playing a bigger role in influencing market dynamics.
Updated on February 11, 2022: Net assets under management, holdings per share and market price per share of the company's investment products.
Total assets under management: US$37.6 billion
— Grayscale (@Grayscale) February 11, 2022
Grayscale, the world's largest crypto asset manager, currently manages $37.6 billion in assets, and wants to convert its flagship bitcoin product, GBTC, into an exchange-traded fund (ETF). On Feb. 4, the U.S. Securities and Exchange Commission (SEC) once again delayed a decision on Grayscale’s Bitcoin ETF application, opening the door for further public comment.
Meanwhile, in Canada, the Purpose Bitcoin ETF continues to see significant inflows, reflecting strong investor interest in spot products.
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