For seven straight weeks, the cryptocurrency market received a total of $12.3 billion. However, last week marked a change as CoinShares reported withdrawals amounting to approximately $942 million – the initial outflow since the extended period of inflows.
Furthermore, the report notes that while trading volumes were substantial last week at $28 billion, this is a significant decrease from the previous week’s figures.
Investors Show Reticence Amid Price Declines
Based on information from James Butterfill, the Head of Research at Coinshares, the recent drop in crypto prices caused a decline of approximately $10 billion in their managed assets. Despite this setback, their current assets under management still surpass their previous peak, amounting to $88 billion.
James Butterfill noted:
In simpler terms, the price drop in recent times may have caused investors to pause and think before investing in new ETFs based in the US. Consequently, these ETF issuers experienced relatively low inflows of approximately US$1.1 billion. However, this was not enough to fully counteract the substantial outflows of around US$2 billion that Grayscale experienced last week.
Significantly, this reluctance wasn’t limited to the United States; instead, it extended to other countries including Sweden, Switzerland, Hong Kong, and Germany, which all witnessed outflows. In contrast, Brazil and Canada recorded more modest inflows of $9 million and $8.4 million respectively.
In contrast to the general market direction, altcoins including Polkadot, Avalanche, and Litecoin attracted approximately $16 million in investments. On the other hand, major cryptocurrencies such as Bitcoin, Ethereum, Solana, and Cardano experienced substantial outflows, with Bitcoin accounting for a significant portion at $904 million.
Crypto Market Performance And Institutional Adoption
Over the last week, Ethereum, Solana, and Cardano experienced price drops that aligned with their outflow figures. Specifically, Ethereum decreased by around 10.9%, Solana declined approximately 17.6%, and Cardano saw a price decrease of about 20.3%.
In contrast to previous trends, Bitcoin and other cryptocurrencies have exhibited encouraging gains in the last day. Bitcoin itself has risen by around 2.5%, currently priced at $66,538.
The improvement we’re seeing can be attributed to the preliminary green light given by Hong Kong for asset managers to start trading Bitcoin and Ethereum spot exchange-traded funds.
Simultaneously, while Coinshares reported a drop in Bitcoin spot ETF investments, filings with the SEC through Form 13F have disclosed that notable Wall Street firms and American banks have begun buying Bitcoin ETFs. The CEO of Apollo Sats, Julian Fahrer, highlighted this important detail.
Driver emphasized the varied character of these applications, coming from investment pros and wealthy families managing anywhere from $200 million to $10 billion in assets, suggesting a broadening embrace from institutions.
Fahrer pointed out that American National Bank invested in Ark’s ETF, marking a noteworthy milestone as it was one of the first banks to purchase Exchange-Traded Funds.
BREAKING: 13F SEC Filings show US Banks are buying #Bitcoin
— Julian Fahrer (@Julian__Fahrer) April 10, 2024
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2024-04-16 00:11