Institutional Investors Poured Hundreds of Millions into Crypto Investment Vehicles Last Week, CoinShares Says

Digital assets manager CoinShares says institutional investors poured hundreds of millions into crypto investment vehicles last week in spite of market-wide sell pressure.

Digital assets manager CoinShares reports that last week, institutional investors directed hundreds of millions into crypto investment vehicles despite market-wide sell pressure.

According to CoinShares’ latest Digital Asset Fund Flows report, last week, institutional crypto investment products experienced net inflows of $308 million.

“Digital asset investment products saw a continuation of inflows last week totaling US$308m, although this masks the largest single day of outflows on the 19th December totaling US$576m, with total outflows in the final 2 days of last week at US$1bn.”

CoinShares notes that last week’s hawkish Federal Open Market Committee (FOMC) announcement resulted in a $17.7 billion loss in assets under management (AuM) by crypto exchange-traded products (ETPs).

“While these outflows may sound alarming, they comprise just 0.37% of total AuM, ranking as the 13th largest single-day outflow on record. The largest single-day outflow took place in mid-2022, when the FOMC interest rate hike prompted US$540m outflows (2.3% of AuM.)”

Bitcoin (BTC), as usual, led the way with $375 million in inflows. While Ethereum (ETH) and XRP products enjoyed $51.3 million and $8.8 million in inflows each, multi-asset investment products, those investing in a basket of cryptos instead of just one, saw a substantial increase in outflows.

“The most dramatic flows were from multi-asset investment products, which saw US$121m of outflows last week.”