Cryptocurrency fund inflows surged last week, while investors took a dip from FTX. Digital asset investment products saw the biggest inflows for 14 weeks, with a total of $42 million. Entries began later in the week following extreme price weakness caused by the FTX/Alameda crash. Meanwhile, while exiting Solana (SOL), Bitcoin and Ethereum investment products received entry.
Crypto investment products have seen record entry in recent months
Crypto funds saw their biggest inflows in 14 weeks, with net inflows of $42 million in the seven days ending Nov. The entries coincided with the sharp decline of the crypto market, triggered by the collapse of Sam Bankman-Fried’s business empire, including the FTX exchange and Alameda Research trading firm, last week.
According to experts, investors see this price weakness as an opportunity. In addition, experts suggest that they distinguish between ‘trusted’ third parties and a system that is not inherently trustworthy.
Switzerland separated from other regions
Entries took place in all regions. The most important ones are the USA, Brazil and Canada, which received $29 million, $8 million and $4.3 million respectively. Switzerland was by far the country with the highest number of entries from year-to-date. Despite this, it was the outlier country that saw small outflows totaling US$4.6 million.
BTC, ETH, MATIC entered while Solana (SOL) exited
Bitcoin has recorded its biggest entry since the beginning of August this year. Accordingly, it became the primary focus with a total of $19 million in inflows. However, Short Bitcoin investment products have also seen inflows totaling $12.6 million. According to experts, while this is an overall positive sentiment, it does show some investors are startled.
As you follow on Kriptokoin.com, the leading crypto Bitcoin has dropped over 20% in the last seven days. As a result of this move, it is trading at around $16,400 on Monday.
Leading altcoin Ethereum saw small inflows in its second week, totaling $2.5 million. Multi-asset saw its biggest entry since June 2022 with $8.4 million. This shows that investors see it as a relatively safe haven. It’s also a sign that there is little activity in altcoins.
Meanwhile, Solana (SOL) is the only altcoin to see significant growth. Solana is among the altcoins most affected by the FTX collapse. The outputs are proof of that. Blockchain stocks recorded the biggest weekly outflow since May 2022 with a total of US$32 million. According to experts, this implies that more conservative investors in the asset class are flying into the safety.
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