- CoinShares revealed insights into the evolving landscape of the digital asset space with its Digital Asset Fund Flows Weekly Report published on December 11.
- CoinShares’ latest Digital Asset Fund Flows Weekly Report highlighted ongoing trends in the digital asset investment landscape.
- Bitcoin continues to be the focus of investors, with a net inflow of $20 million last week, bringing a total impressive inflow of $1.7 billion since the beginning of the year.
While capital inflows from institutional investors show signs of decline, positive inflows persisted in the past week.
Capital Inflows from Institutional Investors
CoinShares, through its Digital Asset Fund Flows Weekly Report released on December 11, provided insights into the evolving landscape of the digital asset space, indicating a diminishing interest from institutional investors. Among the notable points is the record weekly inflow of blockchain shares and a continued influx of $43 million.
However, these statements coincide with a period of gloomy momentum in the market, revealing investor sensitivities and the dynamic nature of the digital asset market. Additionally, the chart also indicated a decrease in weekly flows compared to previous weeks, despite being positive.
CoinShares’ latest Digital Asset Fund Flows Weekly Report highlighted ongoing trends in the digital asset investment landscape. With a total 11-week inflow of $43 million, some analysts see this as a sign of sustained investor interest in this evolving sector.
However, despite being on the positive side, the decline in weekly flows has led to speculation that institutional investors may be losing focus on the market. Particularly, it raised speculations about a potential crypto market sell-off in the coming weeks.
Meanwhile, regionally, the report shows Europe leading with a $43 million inflow. The United States follows with a $14 million inflow, attributed to short positions. Conversely, Hong Kong and Brazil experienced outflows of $8 million and $4.6 million, respectively, reflecting various market dynamics.
At a significant milestone, the report recorded an enormous weekly inflow of $126 million for blockchain shares. This indicates increased investor interest and confidence in companies associated with the blockchain space.
Will Crypto Market Selling Persist as BTC and ETH Decline?
Bitcoin continued to be the focus of investors last week with a $20 million net inflow, bringing a total impressive inflow of $1.7 billion since the beginning of the year. Interestingly, short Bitcoin also attracted an inflow of $8.6 million, indicating a cautious stance among investors who potentially see the current price increase as unsustainable.
As of the time of writing, the Bitcoin price dropped by 2.83%, reaching $42,424.09 and erasing a significant portion of its recent gains. While the BTC price reached its highest level in the last 24 hours at $44,034.62, it dropped to its lowest level at $41,329.86, indicating a possible crypto market sell-off.
On the other hand, Ethereum, the second-largest crypto by market capitalization, experienced its impressive sixth consecutive week with a $10 million inflow. This shows renewed investor confidence since recovering from a $125 million outflow seven weeks ago.
However, as of the time of writing, the Ethereum price dropped by 3.34%, reaching $2,251.14, reflecting the somber sentiment seen in the market on Monday. Significant declines in major cryptocurrencies led to a 2.8% decrease in the global crypto market value, bringing it down to $1.58 trillion.
Meanwhile, CoinShares’ latest report also indicated the continued preference for altcoins such as Solana and Avalanche, with inflows of $3 million and $2 million, respectively, last week.
