The Market Sell-Off Isn’t Deterring Institutional Crypto Investors, Inflows On An Upward Trend

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As an analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market fluctuations and investor behavior patterns. The recent events in the crypto space are no exception to the rule – institutional investors are buying the dip while retail investors are looking for the next big thing.

Even though smaller fish in the market might be responding to widespread selling forces, it’s worth noting that big-time cryptocurrency investors have taken a contrary approach, funneling hundreds of millions into crypto investment funds during the last week.

Based on a recent report by CoinShares, there was an overall investment of $308 million into digital asset products. However, this figure is overshadowed by the massive $576 million withdrawal that occurred on December 19, which marked the largest single-day outflow. In the last two days of the previous week, a total of $1 billion was withdrawn.

The report highlights that although these withdrawals might seem concerning, they only make up 0.37% of the total assets managed, placing them as the 13th largest single-day withdrawal in history. Interestingly, a significantly larger one-day withdrawal occurred in mid-2022 when the FOMC’s interest rate hike triggered withdrawals amounting to $540 million, which represented 2.3% of the total assets under management.

In the meantime, price adjustments led to a decrease of approximately $17.7 billion in total assets under management (AuM) for digital asset exchange-traded products (ETPs), according to CoinShares. This reduction is believed to be a market reaction to the economic projections announced by the Federal Open Market Committee (FOMC) on December 18. The US economy, as per these predictions, is expected to expand by 2.5% this year and 2.1% in the year 2025.

Institutional Crypto Investors Favor $BTC and $ETH

As a researcher, I’d rephrase that statement as follows: Last week, I observed that we witnessed the steepest withdrawals from multi-asset investment products, amounting to approximately $121 million.

Contrarily, Bitcoin saw a net investment of $375 million, while Ethereum only witnessed $51 million. Notably, large investors, or “whales,” have been active in Ethereum inflows over the past few days, purchasing approximately 340,000 Ethereum, amounting to more than $1 billion, despite Ethereum’s current phase of correction.

Over the past five days, I’ve noticed that Ethereum-based Exchange-Traded Funds (ETFs) have been attracting significant investments. Specifically, there was a net inflow of approximately $62.73 million between December 16 and December 20. This adds to the cumulative historical net inflow, which now stands at a whopping $2.328 billion. With a total net asset value of $12.155 billion, it’s clear that these ETFs are gaining traction in the crypto market.

Whale Activity To Spur Meme Coin Crypto Prices

Ethereum’s ($ETH) dominance isn’t exclusive when it comes to attracting large investors, or “whales.” Despite a recent downturn, Dogecoin ($DOGE) has also experienced a surge in whale activity. Two significant transactions amounting to $23.5 million and $34 million respectively have taken place recently.

Generally, when whales (large investors) start investing in cryptocurrencies, it often indicates growing confidence among investors and sets the stage for a potential bull run, suggesting that market optimism may be shifting.

That’s particularly good news for meme coin newcomers, including the recently listed Pepe Unchained ($PEPU) and Crypto All-Stars ($STARS), as well as Wall Street Pepe ($WEPE), which is currently on presale. 

Wall Street Pepe harbors a personal grudge against large trading groups who operate as insiders. To counteract this, he’s gathering a force of individual investors. By educating them about trading strategies and market trends, he aims to transform these small investors into influential players in the market themselves. This empowering mission places $WEPE among the top meme coins this December.

Amidst a wider market downturn, I’ve found myself drawn to the ongoing presale of $WEPE, a crypto token that has been generating quite a buzz recently. In just 21 short days since its launch, it has managed to amass over $35M in investments, with an impressive $1.67M raised within the last 24 hours alone. This momentum has sparked speculation: could $WEPE potentially unseat the current reigning token, $PEPE?

Time for Retail Investors to Lead the Charge

Today, the price of WEPE is at $0.000365 and is expected to rise. This makes it an excellent early investment opportunity. By investing in WEPE now, you’re not only potentially benefiting financially, but also contributing to their mission of providing a level playing field for both retail and institutional crypto investors.

Initially, I encourage you to do your own research (DYOR) before proceeding. For further details, I suggest exploring the official website, delving into the $WEPE whitepaper, and investigating the X channel for more insights.

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2024-12-24 15:42