The supply of funds to crypto funds increased last week when Ethereum (ETH) products interrupted a nine-week outflow period in the last sign that institutional managers are regrouping assets.
Digital asset investment products posted a combined inflow of $ 75.3 million last week, according to data released by CoinShares on Monday. Bitcoin (BTC) investment products received $ 25.1 million in injections, while Ethereum products raised $ 20.9 million in capital.
Positive inflows have also been reported for funds with several assets exposed to several cryptocurrencies. The products Solana (SOL), Polkadot (DOT) and Ripple (XRP) were also positive during the week.
The flow of cryptocurrencies has increased for four consecutive weeks, indicating that the massive decline at the end of 2021 is beginning to reverse. Kryptofond raised $ 209 million in four weeks.
At the end of 2021, institutional leaders reduced their presence on cryptocurrencies, perhaps to lock in profits for the rest of the year and also cope with extreme market volatilities. 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 data show that the market has emerged from a strong fear phase.
While analysts still disagree on whether the market has bottomed out and whether Bitcoin and Ethereum can test their lowest levels again in 2022, CoinShares’ flow data provides a good indicator of institutional investor sentiment. As Cointelegraph reported, institutional demand for cryptocurrencies has grown exponentially over the past year and plays an even greater role in influencing market dynamics.
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Grayscale, the largest crypto asset manager, currently manages $ 37.6 billion in assets and wants to turn its flagship GBTC Bitcoin product into an ETF. On February 4, the US Securities and Exchange Commission again delayed its decision to implement the Grayscale Bitcoin ETF, which opened the door for more public comment on the matter.
Meanwhile, in Canada, the Purpose Bitcoin ETF continues to record significant inflows, reflecting strong investor interest in the spot product.