Institutional Investors Seek Safe Haven In Crypto Products Amid Market Uncertainty

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Since the beginning of investing in crypto markets, institutional investors have played a major role. Like all investors, institutional investors can also be affected by the volatility of the crypto market’s prices. The result has been that big money is looking for safe havens where they can move their capital when the worst happens. They may turn to altcoins, but they seem to be having better success with crypto products.

Market Outflows

Outflows have once again rocked the recent crypto market recovery. More investors took profits as prices rose, which led to outflows. In the week prior, these outflows from investment products digital grew as high as $141 millions in one week. It was also one of largest 2022. The total assets under management (AuM), which now stands at $38billion, had fallen to a one-year low. AuM had fallen to its lowest level in July 2021.

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Bitcoin and other altcoins weren’t spared from the flurry of attacks. The inflow trend of the week before was quickly reversed by the pioneer cryptocurrency. The cryptocurrency suffered outflows in excess of $154million within one week. It was the worst loser last week. The same trend was seen in Ethereum, which saw outflows totaling $0.3million. 

However, this trend would not be followed by other altcoins. Institutional investors have begun to notice digital assets like Polkadot and Cardano, which saw each asset generate $1 million. 

Total crypto market cap chart from TradingView.com

 Source: TradingView.com - Crypto Total Market Capital| Source: Crypto Total Market Cap on TradingView.com

The fate of blockchain equity investments products was the same as Bitcoin or Ethereum. Outflows reached $20 millions. It was the latest trend in broad selling of equities, which had led to more investors moving out.

Multi-Crypto Products offer HavenB

Given the bad news in crypto markets, institutional investors sought shelter in alternative investments to cryptocurrencies. The multi-crypto investments products that have proven to be the winners in the last week have been what they have settled on. 

For the week ended last week, multi-crypto investments products received inflows of $9.7million. Multi-crypto investments products now have $185 million in total assets. The total inflows are 5.3% for the year.

Long Liquidations Continue To Rock Market As Bitcoin Struggles To Settle Above $30,000| Long Liquidations Continue To Rock Market As Bitcoin Struggles To Settle Above $30,000

This investment product continues to be one of its most successful, compared with other similar products. Even though there has been a lot of volatility in the market, only two weeks have passed where outflows were recorded for multi-crypto investments products.

However, bitcoin’s year-to date and monthly net flows are positive. It is now at $307 million and $187million, respectively. Short bitcoin outflows had caused $1.1 million to leave the market.

Featured image taken from Moneycentral. Chart from TradingView.com

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