Institutional inflows into crypto hit lowest levels since October

Mar 29, 2021 | CoinTelegraph News | 0 comments


Managers bought $21 million worth of digital asset investment products last week, according to Coinshares. On a market-cap adjusted basis, Ethereum remains the most popular investment.

Capital flows into cryptocurrency investment products rose again last week, though the pace of growth has slowed since the start of the year, possibly marking a local top in institutional demand. 

Net inflows totaled $21 million for the week ending March 27, 2021, according to Coinshares, a European digital-asset manager. That was the lowest level since October 2020 when Bitcoin (BTC) was trading sub-$14,000.

Coupled with low investment volumes, investor appetite for crypto assets appears to have waned. The decline coincided with the lackluster price performance of major assets like Bitcoin and Ethereum (ETH), which have been unable to test new highs in recent weeks. Daily trade volumes for digital asset products fell to $788 million last week compared with $900 million for the whole of 2021.

Coinshares noted that profit-taking was also in play as investors sitting on large unrealized gains decided to take some off the table.

“We have recently witnessed a significant reduction in inflows and in some cases outflows, for the larger and longer established pre-2016 investment products,” the asset manager said, adding:

“… we believe this is due to investors sitting on multi-year gains taking profits.”

Although Bitcoin investment products generated nearly half of the total weekly inflows, on a market capitalization-adjusted basis, Ethereum products were the most popular. Inflows into ETH investment funds rose by $5.4 million last week.

Total inflows increased for 21Shares and the Purpose exchange-traded fund but declined for CoinShares and virtually flat-lined for Grayscale.

Despite the modest pullback in inflows, institutional investors remain a driving force behind the cryptocurrency bull market. As Coinshares reported last week, crypto assets held by institutional investment managers have topped $57 billion. And while Bitcoin and Ethereum continue to trade below all-time highs, the total cryptocurrency market capitalization rose to near-record levels on Monday. The total crypto market cap peaked just north of $1.83 trillion, according to CoinMarketCap.

News Source from

Related Articles

Why China’s bitcoin mining dominance is fading

Why China’s bitcoin mining dominance is fading

Quick Take For years, China-based bitcoin miners have held the vast majority of the bitcoin network’s mining capacity. Lately, that dominance has been fading. A global chip shortage and a shift in the market for mining hardware are the two major contributing factors....

Algorand pledges carbon-negative blockchain

Algorand pledges carbon-negative blockchain

Algorand and ClimateTrade are working on a sustainability oracle that would drive down carbon emissions. Smart contract platform Algorand plans to achieve a carbon-negative network by implementing a “sustainability oracle” in partnership with ClimateTrade, in a move...

Pin It on Pinterest

Share This