The entire cryptocurrency market witnessed a significant amount of price corrections over the past couple of weeks. Selling pressure on different crypto exchanges was estimated to aggravate by another 10-15% over the short term. Keeping all that in mind, here’s how investors reacted to such headwinds.
Looping institutional flows
Digital asset investment products saw inflows totaling $109 million last week despite recent price weakness and the perceived negative impact of the looming conflict in Eastern Europe. CoinShares’ “Digital Asset Fund Flows Weekly” report from February 22 shared further insights in a report.
James Butterfill, the author of the report opined:
“Following the string of releases in January, the latest data marks the 5th week of entries. While entries were seen in both Europe and the Americas, it was mainly the latter with entries totaling 101 million dollars.
The graph below supplemented the aforementioned argument.
Bitcoin (BTC), Solana (SOL) and Avalanche (AVAX) were clearly the star of the show.
Bitcoin, the king coin led the way with $89 million worth of inflows between 14 February and 18 February, the highest since December 2021. However, the report opined:
“Inflows remain tepid, with the last 5 weeks of inflows totaling $221 million, representing 0.7% of total assets under management (AuM).”
In comparison, Ether investment products offering, by contrast, saw $15.2 million in outflows last week. Surprisingly, it only generated inflows in one of the past 11 weeks. Ethereum competitors made sure to take advantage of this deficit.
Avalanche, an up-and-coming smart contract platform and Ethereum competitor, saw inflows totaling $25 million last week. However, the influx here represented “single day trading”. Ergo, it was early to tell if this represented a broader appetite for said altcoin.
Meanwhile, multi-asset and Solana investment products totaled $9.4 million and $1.2 million respectively as per the report. SOL investment products seem “relatively insulated from outflows seen in other products.”
Overall, ETH suffered the most compared to the previous report from February 15. After a long nine-week streak of noting outflows from its investment products, the native Ethereum token saw inflows totaling $21 million in the week ending February 11.
