A-Z of inflows and outflows and what it means for crypto traders and investors
The aftermath of FTX’s collapse has mostly been about customers getting tier funds stuck on the exchange as well as heightened fear, uncertainty, and doubt (FUD) in the broader crypto market.
However, the latest CoinShaes report shed light on some interesting metrics indicating that traders and short-term investors have been making the most of this chaos.
Inflow reaches 14-week high
According to the Weekly Digital Asset Fund Flows report released by the largest digital asset investment group in Europe, digital asset investment products saw inflows totaling $42 million. This marked a 14-week high for this asset class. Interestingly, the timing of the increased investment was awfully close to the collapse of Bahamas-based FTX and it’s sister firm Alameda Research.
The crypto exchange’s meltdown led to a slump in crypto prices. This could’ve likely triggered increased inflows between 7 November and 11 November. Bitcoin [BTC] was the biggest beneficiary of this renewed interest in digital asset investment products. The flagship crypto saw inflows totaling $19 million. There was interest on the other side as well, with investors pouring $12.6 million into shorting Bitcoin.
Blockchain equities on the other hand, did not fare so well. The report stated that investors abandoned this asset class in favor of safer investment options, leading to $32 million in outflow. This was the largest recorded in six months. Speaking of equities, investment giant Goldman Sachs recently cut Coinbase’s share price target from $49 to $41, indicating a decline in institutional confidence.
Solana, which was probably the most associated project with FTX, paid the price of that association. This can be said as Solana recorded a $1.1 million decrease in its weekly fund flow.
Performance compared to last week’s stats
Last week’s funds flow report by CoinShares is in stark contrast to the latest report. This week’s net flow saw a whopping growth of more than 171%. Meanwhile, net flow for the United States went from -$20.6 million to $28.8 million. The investment in Bitcoin also saw a massive increase of 242%.