Institutional investors are back on the cryptocurrency market as most digital assets show first signs of recovery
The digital asset market faced strong inflows totaling $127 million in the past week alone despite the negative performance of most cryptocurrencies in the market, according to a CoinShares report.
Compared to the previous week, digital assets inflows faced an uptick, most likely due to a slight recovery on the cryptocurrency market. As data suggests, traders became more active as the volume of inflows to risky assets increased.
Geographically, the positive sentiment and inflows were mostly concentrated in North America, with inflows totaling over $150m versus $24m outflows from Europe. Bitcoin was the most popular asset among institutional investors, as nearly $100 million in funds were transferred to it.
Purpose ETF appeared to be the largest inflows provider for the cryptocurrency market with $130 million investment in the last week only. CoinShares XBT was the biggest loser, with $21 million being withdrawn from the market by the fund’s customers.
As for Ethereum and other altcoins, alternative cryptocurrencies saw inflows totaling around $33 million last week. The second-largest cryptocurrency received $25 million, while various multi-asset funds saw inflows of $8.6 million.
The return of institutional investors to the crypto market might be a sign of a beginning recovery after more than three months of correction that caused an average 50% drop in the value of most digital assets.
Total cryptocurrency market capitalization currently remains at $1.9 trillion, while hitting a low of $1.515 trillion earlier in January 2022. At press time, Bitcoin is trading at $38,768 , while Ethereum consolidates at $2,583.
