Modest inflows in crypto funds suggest investors to take advantage of dips

According to digital asset manager CoinShares, the inflows came later in the last week during a period of significant price weakness. During this period, Bitcoin fell to $38,000, while Ethereum tested the low-$3,000 level.

Bitcoin, the world’s largest crypto asset, saw a total net inflow of $14 million last week, representing 1% of the total assets under management (AUM) in the past five weeks, with an outflow of $317 million. Ethereum, on the other hand, continues to outflow, last week saw an outflow of $16 million.

“The current seven-week outflow now totals $245 million, or 2% of the total AUM, highlighting the recent downturn among investors focused on Ethereum rather than Bitcoin,” CoinShares said in a note.

Among altcoins, a cumulative term to define cryptocurrencies that came after Bitcoin, Cardano, Polkadot and Solana saw total net inflows of $1.5 million, $1.5 million and $1.4 million, respectively.

Investors continued to add multi-asset investment products with $8 million last week.

According to CoinShares, the total AUM in crypto funds is now $51 billion, the lowest since the beginning of August 2021, a 41% drop from the November 2021 peak of $86 billion.

In terms of individual crypto fund providers, Grayscale, the world’s largest digital asset manager, had a total AUM of $35.26 billion, followed by CoinShares with an AUM of $3.73 billion and 3iQ with an AUM of $2.02 billion.

In recent days, crypto assets have remained depressed in direct response to Federal Open Market Committee (FOMC) minutes, which revealed the concerns of the US Federal Reserve for rising inflation.

In response, the total market capitalization of crypto assets has fallen from above $3 trillion in November 2021 to just below $2 trillion currently.