In a recent report by CoinShares, it was revealed that institutional investors continued to show interest in crypto investment vehicles despite market sell pressure. According to the Digital Asset Fund Flows report, institutional crypto investment products received net inflows of $308 million last week.
The report highlighted a significant influx of funds into digital asset investment products, with Bitcoin leading the way with $375 million in inflows. Ethereum and XRP products also saw substantial inflows of $51.3 million and $8.8 million, respectively. However, multi-asset investment products experienced outflows of $121 million, indicating a shift in investor sentiment towards diversified portfolios.
The Federal Open Market Committee (FOMC) release last week had a notable impact on crypto exchange-traded products (ETPs), resulting in a $17.7 billion loss in assets under management (AuM). Despite this, CoinShares reassured investors that the outflows only accounted for 0.37% of total AuM, ranking as the 13th largest single-day outflow on record.
It is important to note that the largest single-day outflow in history occurred in mid-2022, triggered by an FOMC interest rate hike which led to $540 million in outflows (2.3% of AuM). The report also mentioned a significant outflow of $576 million on December 19th, contributing to a total outflow of $1 billion in the final two days of the week.
Overall, institutional investors remain optimistic about the long-term prospects of digital assets, despite short-term market fluctuations. The report serves as a reminder of the resilience and growing interest in the crypto space among institutional players.
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Source: CoinShares
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