Inflows into cryptocurrency investment products rose dramatically a week ago as institutional investors bought the dip among the marketwide collapse triggered by FTX’s and Alameda Research’s bankruptcies.
Digital asset investment products saw inflows totaling $42 million within the week ending November. 13, the biggest rise in 14 days, based on CoinShares data. Bitcoin (BTC) investment products saw the biggest inflows at $19 million, adopted by multiasset and Ether (ETH) funds at $8.six million and $5.9 million, correspondingly.
Investors were also betting on the further degeneration in market conditions, with short Bitcoin products registering $4.8 million in weekly inflows.
Internet inflows were recorded across all land masses, brought through the U . s . States ($29 million), South america ($8 million) and Canada ($4.3 million).
Although investors were buying into crypto investment products, their outlook on blockchain equities soured. CoinShares data says blockchain equities registered $32 million in weekly outflows, the biggest since May. Meanwhile, the broader equity market recorded its best week of gains since March, using the technology-heavy Nasdaq Composite gaining 8.1% on less strong-than-expected inflation figures.
The cryptocurrency market faced restored sell-side pressure a week ago as Mike Bankman-Fried’s FTX exchange declared personal bankruptcy carrying out a operate on its assets. The financial institution run was triggered by Binance’s sudden liquidation of FTX Token (FTX) on November. 6. Binance Chief executive officer Changpeng Zhao expressed curiosity about buying the collapsing derivatives exchange but backed out under 24 hrs later because of an evident hole in FTX’s finances. It’s since emerged that FTX is located on roughly $8 billion in liabilities.
Full disclosure: Binance never shorted FTT. We have a bag of once we stopped selling FTT after SBF known as me. Very costly call. https://t.co/3A6wyFPGlm
— CZ Binance (@cz_binance) November 14, 2022
Crypto prices have the symptoms of stabilized following last week’s rout, with Bitcoin presently hovering just north of $16,500, based on Cointelegraph’s BTC cost index. Market sentiment, however, might take several weeks or perhaps longer to recuperate.