Ethereum investment products see first weekly inflows in 10 weeks

The worst of the crypto market downturn may be over as institutional investors buy the dip, CoinShares data shows.

Last week saw a surge in inflows into cryptocurrency investment funds, with ethereum products breaking a nine-week-long outflow, the latest sign that institutional managers are back accumulating assets.

Data released Monday by CoinShares showed that digital asset investment products accumulated $75.3 million in inflows last week. Bitcoin investment products attracted inflows worth $25.1 million, while ethereum products attracted inflows worth $20.9 million.

Multi-asset funds investing in several cryptocurrencies also saw positive inflows. Solana (SOL), Polkadot (DOT) and Ripple (XRP) products also saw net inflows last week.

Fund inflows to crypto assets have risen for four straight weeks, suggesting that the massive drawdown trend towards the end of 2021 is beginning to reverse. Over a four-week period, crypto funds have amassed $209 million.

Institutional managers reduced their investments in cryptocurrency products at the end of 2021, either to realize profits by the end of the year or to ride out extreme volatility in the market. The Bitcoin Fear and Greed Index, which measures market sentiment, fell to "extreme fear" in early January. The index has stabilized in recent weeks, and the latest readings suggest the market has moved out of a phase of extreme fear.

Are we in the middle of a big bear market cycle?

Analyst @AriRudd pointed out that there are three indicators that could pull the price of Bitcoin down to $24K-$27K.

— Cointelegraph (@Cointelegraph) February 14, 2022

While analysts remain divided on whether the market has formed a clear bottom or whether Bitcoin and Ethereum will retest their 2022 lows, CoinShares' inflow data provides a good indicator of institutional investor sentiment. barometer. As Cointelegraph reported, institutional demand for crypto assets has grown substantially over the past year and is taking a bigger role in influencing market dynamics.

Update on February 11, 2022: Net assets under management, holdings per share and price per share of the Company's investment products.

Total assets under management: $36.2 billion

— Grayscale (@Grayscale) February 11, 2022

Grayscale, the world's largest crypto asset manager with $37.6 billion in assets under management, is looking to convert its flagship bitcoin product GBTC into an exchange-traded fund (ETF). On Feb. 4, the U.S. Securities and Exchange Commission (SEC) once again delayed a decision on Grayscale’s Bitcoin ETF filing, opening the door for further public comment.

Meanwhile, in Canada, the Purpose Bitcoin ETF continued to receive significant inflows, reflecting strong investor interest in spot products.