Institutional investors are seeking safe haven in crypto products amid market uncertainty

Institutional investors are seeking safe haven in crypto products amid market uncertainty

Institutional investors have been a big part of the crypto market since they started investing in the market. Like any other investor, institutional investors are not immune to the wild price fluctuations that characterize the crypto market. This has resulted in a lot of money looking for a safe haven to move their money to until the worst of the market collapses. Sometimes they turn to altcoins, but this time they seem to have more luck with crypto products.

Outflows Rock Market

The recent recovery of the crypto market has been shaken again by the outflow. As prices recovered, more and more investors decided to take a profit and this led to a greater outflow. Last week, these outflows from digital investment products grew by as much as 141 million dollars in one week, which is one of the largest in 2022. This has led to a decline in total assets under management (AuM) to a one-year low, which now stands at $ 38 billion. The last time AuM was so low was in July 2021.

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Neither Bitcoin nor altcoins were spared attacks. For the pioneering cryptocurrency, the inflow trend from the previous week was quickly reversed. Instead, it made outflows totaling $ 154 million in one week, making it the biggest loser last week. In the same vein, Ethereum has also followed in the footsteps of bitcoin with an outflow of $ 0.3 million.

Other altcoins, however, would not follow this trend. Digital assets such as Cardano and Polkadot are breaking through the radar of institutional investors and this has led to both assets bringing in an inflow of one million dollars.

Crypto market cap drops to $1.239 trillion | Source: Crypto Total Market Cap on TradingView.com

Blockchain equity investment products would suffer the same fate as Bitcoin and Ethereum, and outflows reached $ 20 million. This followed the recent trend of a wide sale of shares that led to the departure of more investors from them.

Multi-Crypto products are provided by HavenB

With so much bad news circulating in the market, institutional investors have sought refuge elsewhere than investing directly in cryptocurrencies. What they landed on were the multi-crypto investment products that recently became winners last week.

These multi-crypto investment products generated a total inflow of $ 9.7 million last week alone. This led to total assets under management at $ 185 million for multi-crypto investment products, while total inflows accounted for 5.3% on a year-to-date basis.

Related Reading | Long liquidations continue to grow in the market as Bitcoin struggles to settle above $ 30,000

He is still one of the best compared to his other colleagues. While others have seen countless weeks of outflows in 2022 so far, there have been only two weeks in which multi-crypto investment products have recorded outflows, making them a safer bet for institutional investors in times of market uncertainty.

Nevertheless, net flows from year to date and from month to date remain positive for bitcoin. It currently stands at $ 307 million and $ 187 million. Although $ 1.1 million left the market as a result of the outflow of short bitcoin.

Featured image from Moneycentral, chart from TradingView.com



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