Institutional investors are still pouring money into crypto, even with recent market drops, according to CoinShares.
Millions Invested Despite Market Sell-Off
Last week saw a surprising $308 million flow into institutional crypto investment products. This is despite a significant market downturn. CoinShares notes that while this looks positive, it hides a massive single-day outflow of $576 million on December 19th, with a total of $1 billion leaving the market in the final two days of the week.
Fed Rate Hike Impact
The Federal Reserve’s interest rate hike announcement caused a $17.7 billion drop in assets under management (AUM) for crypto exchange-traded products (ETPs). However, CoinShares points out that this represents only 0.37% of the total AUM, making it the 13th largest single-day outflow ever recorded. They compare it to a much larger outflow in mid-2022 (2.3% of AUM) triggered by a similar Fed action.
Bitcoin Leads the Way, Others Mixed
Bitcoin led the charge with inflows of $375 million. Ethereum and XRP also saw positive inflows, at $51.3 million and $8.8 million respectively. However, multi-asset investment products (those investing in a basket of cryptocurrencies) saw significant outflows of $121 million.
Disclaimer
This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in anything, especially high-risk assets like cryptocurrencies.
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