The entire cryptocurrency market has seen significant price corrections over the past few weeks. The selling pressure on various crypto exchanges was projected to increase by another 10-15% in the short term. With all that in mind, here’s how investors reacted to such adverse situations.
Institutional inflows on the loop
Despite the recent price weakness and perceived negative impact from the impending conflict in Eastern Europe, digital asset investment products saw a total inflow of $109 million last week. CoinShares’ February 22 “Digital Asset Fund Flow Weekly” report shared further insights in a report.
Report author James Butterfil said:
“The latest data marks the fifth week of inflows, following the run of outflows in January. While inflows were seen in both Europe and the US, it was mainly the latter with a total inflow of US$101m.
The graph below complements the above argument.
Bitcoin (BTC), Solana (SOL), and Avalanche (AVAX) were clearly the stars of the show.
Bitcoin, the king coin, led the way with $89 million worth of inflows between February 14 and February 18, the highest since December 2021. However, the report said:
“With total inflows totaling $221 million over the past 5 weeks, inflows continue to be slow, accounting for 0.7% of total assets under management (AUM).
In contrast, the Ether investment products offering saw an outflow of $15.2 million last week. Amazingly, it only generated an inflow out of the last 11 weeks. Ethereum competitors made sure to take advantage of this loss.
Avalanche, a promising smart contract platform and competitor to Ethereum, saw a total investment of $25 million last week. However, the inflow here represents “same day trading”. Ergo, it is too early to tell whether this represents a widespread appetite for the said altcoin.
Meanwhile, according to the report, the multi-asset and Solana investment products totaled $9.4 million and $1.2 million, respectively. SOL investment products appear to be “relatively insulated from outflows seen in other products.”
Overall, ETH suffered the most losses compared to the previous report on February 15. After a long nine weeks of noticing outflows from its investment products, Ethereum’s native token saw a total inflow of $21 million during the week ended February 11.