New Delhi: Global crypto funds have seen record weekly net inflows so far this year, totaling $274 million in the seven days to May 13, a strong sign that investors have recently taken to the TeraUSD (UST) stablecoin d-peg. And it has seen a broader sell-off associated with it as a buying opportunity, said digital asset manager CoinShares.
Also in the last week (April 30 to May 6), crypto funds saw a net inflow of $40 million, even as digital asset prices fell amid risk-off sentiment in the broader financial markets.
Last week, North American investors saw a total of $312 million in net inflows, in contrast to European investors, where sentiment was polarizing, but saw total outflows of $38 million.
The world’s largest crypto asset, bitcoin, was the primary beneficiary, with a total inflow of $299 million last week, indicating that investors were flocking to the relative safety of the largest digital asset.
Short-Bitcoin (a bet that the price will continue to drop) saw a modest inflow of $0.7 million, which is slow compared to previous weeks.
Notably, the UST-linked Luna, the coin at the center of this recent price correction, saw assets under management (AUM) drop 99% during the week. Despite this, some fearless investors added $0.043 million to the position.
Ethereum, the largest altcoin, continued with a total outflow of $27 million last week. There has been a steady exit from the asset this year and the outflow has now reached $236 million, a substantial 2.6% of the total AUM.
Multi-asset investment products saw total net inflows of $8.6 million, suggesting that investors saw a diversified approach as an opportunity to buy into this recent price weakness.
In terms of individual crypto fund providers, Grayscale, the world’s largest digital asset manager, had a total AUM of $26.30 billion, followed by CoinShares with an AUM of $2.73 billion and 3iQ with an AUM of $1.54 billion. The total AUM of crypto fund providers for the week ended 13 May 2022 was $39.25 billion.