The entire cryptocurrency market has witnessed a massive setback. Overall, it shed more than 2.5% of its market capitalization, which currently stands[1] at $2.52T. Yet, institutional investors seem unfazed by the bloodbath.
The latest report published[2] by CoinShares provides some support to this narrative. As of 22 November, Digital Asset Fund Flows Weekly report stated,
“Digital asset investment products saw inflows totaling US$154m last week, with the most recent price correction, where Bitcoin prices fell by 12% over the week, seemingly not impacting the positive investor sentiment.”
As mentioned above, there was a decent hike in inflows as compared to the previous[3] report. At press time, the weekly crypto asset looked like this:
Source: CoinShares[4]
The largest altcoin witnessed inflows amounting to over a $100 million, whereas Bitcoin,
“…continues to see the majority of inflows, totaling US$114m last week. This has helped it retain assets under management (AuM) share of 67% over the last month amongst investment products.”
The table below showcases a similar scenario.
Source: CoinShares
Now, here’s an interesting part. Institutional demand had skyrocketed – there’s no denying this. But what about the price? At press time, BTC was trading[5] deep inside the red-zone. It saw a 3% setback in 24 hours as it dived below the $57k mark. As mentioned in the report,
“This disparity may be due to the recently launched ETFs in the US where investment products saw 90% of inflows.”
Nevertheless, this still marked a significant rise for BTC as compared[6] to the previous findings, that is, more than a 17.5% surge.
Moving on to the altcoins now. Ethereum, the largest altcoin, “saw inflows totaling US$14m last week, marking its fourth consecutive week of inflows
