The sell-off of the past few weeks has been exacerbated by a massive price correction in the crypto market. At the time of writing, the global crypto market capitalization stands at just $1.62T. However, digital asset investment products experienced investment outflows last week for the first time this year (2022). A small but significant development.
A ‘buy-off’ underway?
According to the latest CoinShares report, last week saw a breakout in a 5-week streak of outflows. However, total assets under management (AuM) has fallen to its lowest level since early August 2021 – A is in a 41% free fall from a peak of $86 billion in November 2021.
Source: CoinShares
Digital Asset Manager Coinshares CEO James Butterfill stated,
“Digital asset investment products saw inflows totaling US$14.4 million last week, breaking outflows five weeks earlier. Money poured in at the end of the week during a period of significant price weakness, suggesting that investors at current prices are seeing this as a buying opportunity.”
According to the report, investors in the $14 million proposition took advantage of the price drop, thus supporting the “buy down” narrative.
However, this is not the whole picture. In fact, different cryptocurrencies have a different set of reporting tokens.
Bitcoin
Coin King has finally found some good news coming to it. Bitcoin enjoyed last week inflows of $14 million after losing nearly $320 million in outflows over the past five weeks. This represents 1% of AuM in the previous 5 weeks.
The table attached here can be used to highlight the aforementioned statistic.
Source: CoinShares
Needless to say, altcoins have had a slightly different experience.
Ethereum Faces Troubles
Indeed, this is the case with Ethereum, the largest coin of the altcoin market. The second largest crypto-based digital asset investment products continue to see flows. According to the findings’ report,
“Ethereum continues to see outflows, with $16 million in outflows last week. The current 7-week outflow now totals $245 million, or 2% AuM, indicating that much of the recent price drop among investors has focused on Ethereum rather than Bitcoin. ”
Meanwhile, among altcoinsCardano, Polkadot and “investor favorite” Solana saw inflows of $1.5 million, $1.5 million, and $1.4 million, respectively.