- After being drained for five weeks in a row, crypto investment products have now marked $14.4 million in overall gains.
- Analysts and traders clamor for an upside trend following spot market momentum and trend analysis.
After five consecutive weeks of witnessing outflows, crypto investment products have seen inflows worth $14.4 million. In its latest weekly Digital Asset Fund Flows report, CoinShares notes that Bitcoin (BTC) was the asset of choice for most investors. Some of the other crypto investment products saw inflows, but Ethereum (ETH) still witnessed outflows following those of previous weeks.
According to the researchers who authored the report, these inflows are coming up at a time when the crypto market is showing price weakness. The inflows, therefore, suggest that investors “are seeing this as a buying opportunity,” acquiring more for a cheaper price.
Crypto investment products gain $14M
CoinShares’ Bitcoin fund had outflows but those of 21Shares and ProShares registered minor gains. Out of the 14 million gains, Bitcoin led with $13.8 million, while Ethereum saw the biggest losses amounting to $15.6 million. However, gains by multi-asset products caused a net positive inflow to crypto investment products. Crypto market analysts Willy Woo says these are the initial signs of a return of funds to these products:
Early signs that institutional money is starting to come back in.
Ethereum’s seven-week consecutive outflows now total $245 million. According to CoinShares, this shows that “much of the recent bearishness amongst investors has been focused on Ethereum rather than Bitcoin.”
Additionally, funds covered in their report had $51 billion in assets under management (AUM) – the lowest since early August 2021. The AUM has seen losses following the recent depression in crypto asset values. Notably, Grayscale, the world’s largest fund, saw no change in its AUM – still $30.6 billion according to a Jan. 25 update. However, the fund now trades at an unprecedented 30 percent discount.
A silver lining
Analysts and traders have been looking for suitable entry points since BTC’s recent reclamation of its $36K position. The digital asset dipped as far as $33K during late Monday trading but had risen to $36,108 at writing time. Crypto investment products are likely to see more gains in the coming weeks should the current spot market momentum keep on.
More so, CoinShares and Arcane Research last week expressed confidence in an upcoming reversal of losses. Bitcoin has already reached a trough similar to that of the May-July 2021 mini bear market. What followed in August-October 2021 was a 60 percent surge on the back of robust institutional investment. Researchers think the trend is likely to repeat once more.
Related: Tug of war ensues between Bitcoin bulls and bears; Who will win?
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