Crypto investors capitalized on hammered digital asset prices to deploy capital into blockchain token-based funds.
According to a CoinShares report, $441 million in net inflows streamed into digital asset investment vehicles last week following a widespread market downturn and subsequent recovery.
James Butterfill, CoinShares’ head of research, said American investors took advantage of lower prices, with around $384 million parked in digital asset investment products on Wall Street. Other regions like Hong Kong, Switzerland, and Canada also saw modest capital inflows. Bitcoin led the pack and comprised 90% of all inflows, with investors diversifying funds into altcoins.
Crypto dip extends
The virtual currency industry experienced negative sentiment as the overall market lost over 9% of its value last week, falling to $2 trillion. Market leaders Bitcoin (BTC) and Ethereum (ETH) dropped to two-month lows.
BTC fell below $54,000 on Mt. Gox fears and German sell pressures before rebounding above $58,000, while ETH slipped under $3,000. TradingView data showed the altcoin market cap dipped as much as 15%, with altcoins generally declining up to 80% since before Bitcoin’s halving.
Data noted a 4% bounce on Monday as traders seized opportunities for larger gains. However, bearish market-wide sentiment persisted, and cryptocurrencies recorded further losses. The crypto "fear & greed" index is now at 28, its lowest level since last September.
Although the total digital asset market cap rose nearly 3% before falling again due to volatility and Bitcoin FUD, blockchain equities continued in a downswing. Butterfill noted that shares from mining entities and other web3 companies have had $556 million in outflows since the start of the year.
