Institutional Investors’ Crypto Inflow Slips, Will Crypto Market Selloff Continue?

CoinShares unveiled insights into the evolving landscape of digital assets through its Digital Asset Fund Flows Weekly Report on December 11, which indicates a losing interest of institutional investors. Notable highlights include continued inflows at $43 million, with blockchain equities experiencing their largest weekly inflow on record.

However, these revelations come amid a time when the market is experiencing a gloomy momentum, shedding light on investor sentiments and the dynamic nature of the digital asset market. In addition, the chart also suggested that the weekly flow, although positive, declined comparatively from the previous weeks.

Blockchain Equities Records Largest Weekly Inflow

CoinShares’ recent Digital Asset Fund Flows Weekly Report has brought attention to the ongoing trends in the digital asset investment landscape. With 11 consecutive weeks of inflows totaling $43 million, some analysts see this as an indication of sustained investor interest in this evolving sector.

However, despite being on the positive side, the decline in the weekly flows also suggests that institutional investors might be losing focus on the market. Notably, it has also raised speculations about a potential crypto market selloff in the coming weeks.

Meanwhile, regionally, Europe stands out as a key player, leading with $43 million in inflows, the report showed. The United States follows with $14 million, half of which is attributed to short positions. In contrast, Hong Kong and Brazil experienced outflows of $8 million and $4.6 million, respectively, reflecting diverse market dynamics.

Notably, the report showed that in a remarkable milestone, blockchain equities recorded their largest weekly inflows on record at an impressive $126 million. This signals growing investor interest and confidence in companies associated with the blockchain space.

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Crypto Market Selloff To Continue As BTC & ETH Slips?

Bitcoin remains a focal point for investors, witnessing inflows of $20 million last week and bringing year-to-date inflows to an impressive $1.7 billion. Interestingly, short-bitcoin also attracted $8.6 million in inflows, indicating a cautious stance among investors who view the current price surge as potentially unsustainable.

Meanwhile, as of writing, the Bitcoin price slipped 2.83% and traded at $42,424.09, wiping off much of its recent gains. Over the past 24 hours, the BTC price has touched a high of $44,034.62, and a low of $41,329.86, indicating a potential crypto market selloff.

On the other hand, the second largest crypto by market cap, Ethereum marks a noteworthy turnaround, experiencing its sixth consecutive week of inflows at $10 million. This comes after seven weeks ago, Ethereum faced year-to-date outflows of $125 million, showcasing renewed investor confidence.

However, the Ethereum price was down 3.34% to $2,251.14 as of writing, amid a gloomy sentiment witnessed in the market on Monday. Notably, the significant declines in the major cryptos have also caused a slump of 2.8% in the global crypto market cap to $1.58 trillion.

Meanwhile, the latest CoinShares report also showed that altcoins like Solana and Avalanche continue to be favored, with inflows of $3 million and $2 million, respectively, last week.

Also Read: Binance Ends Bitcoin And Ethereum P2P Trading, But There’s A Catch

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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor and crypto journalist at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.