Institutional Investors Seek Safe Haven In Crypto Products Amid Market Uncertainty
May 24 2022 - 7:00PM
NEWSBTC
Institutional investors have been a big part of the crypto market
ever since they started investing in the market. Just like every
other investors, institutional investors are not immune from the
wild price fluctuations that characterizes the crypto market. This
has resulted in big money looking for safe havens to move their
money into while the worst of the market blows over. Sometimes,
they turn to altcoins but this time around seem to have fond better
luck with crypto products. Outflows Rock Market The recent recovery
of the crypto market has been rocked once more by outflows. As
prices had recovered, more investors had chosen to take profits and
this had lead to more outflows. The previous week saw these
outflows from digital investment products grow as high as $141
million in a single week, one of the largest in 2022. This had seen
the total assets under management (AuM) decline towards one-year
lows, now sitting at $38 billion. The last time AuM was this low
had been in July 2021. Related Reading | LUNA Records 100%
Growth In A Single Day. More Upside Coming? Both Bitcoin and
altcoins were not spared the onslaught. For the pioneer
cryptocurrency, the inflow trend from the previous week had been
swiftly reversed. It instead saw outflows totaling $154 million in
a single week, making it the largest loser from last week. In the
same vein, Ethereum had also followed in the footsteps of bitcoin
with outflows reaching $0.3 million. Other altcoins would not
follow this trend though. Digital assets such as Cardano and
Polkadot have been making their way into the radar of institutional
investors and this saw both asset bring in $1 million in inflows
respectively. 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 had reached $20 million. This followed
the recent trend of broad sell-off in equities that had seen more
investors move out of them. Multi-Crypto Products Provide HavenB
With so much bad news floating around the market, institutional
investors have sought refuge in other places besides directly
investing in cryptocurrencies. What they have landed on have been
the multi-crypto investment products which have emerged the recent
winners for last week. These multi-crypto investment products
saw inflows totaling $9.7 million for last week alone. This has
brought the total assets under management to $185 million for
multi-crypto investment products, while the total inflows make up
5.3% on a year-to-date basis. Related Reading | Long
Liquidations Continue To Rock Market As Bitcoin Struggles To Settle
Above $30,000 It remains one of the best performing when compared
to its other counterparts. While others have seen countless weeks
of outflows in 2022 so far, there have been only two weeks where
multi-crypto investment products had recorded outflows, making it a
safer bet for institutional investors during times of market
uncertainty. Nevertheless, year-to-date and month-to-date net flows
remain positive for bitcoin. It currently sits at $307 million and
$187 million respectively. Although $1.1 million had left the
market as a result of outflows from short bitcoin. Featured image
from Moneycentral, chart from TradingView.com
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