Are Bears Gaining Control Despite Rising Crypto Inflows? Says CoinShares Weekly Report

CoinShares’ Digital Asset Fund Flows Weekly Report, released on December 11, reveals insights into a shifting focus among institutional investors. While the market witnesses sustained inflows of $43 million, marking 11 consecutive weeks of positive activity, a closer inspection reveals a subtle decrease in weekly flows compared to previous periods. 

Meanwhile, this suggests a subtle shift in the focus of institutional investors amid the current market selloff.

Europe Leading in Investment Inflow

Europe emerges as a dominant force, leading with substantial inflows of $43 million, showcasing a robust hunger for crypto investments. In contrast, the United States, with $14 million in inflows, half of which is attributed to short positions, presents a diverse picture.

However, Hong Kong and Brazil depict a contrasting trend, experiencing outflows of $8 million and $4.6 million, respectively. These regional variations underscore the intricate dynamics at play in the global crypto landscape.

Meanwhile, the Coinshare report also highlights a notable milestone, in which blockchain equities witnessed their largest weekly inflows on record, totaling an impressive $126 million. This surge suggests a growing interest and confidence in companies associated with the blockchain sector.

Bitcoin’s InFlow Remain Steady

Bitcoin remains in the limelight, with recent weekly inflows totaling $20 million and a noteworthy year-to-date figure of $1.7 billion

However, a notable development emerges with an influx of $8.6 million in short-bitcoin positions. This cautious move among investors hints at concerns about the sustainability of the recent price surge.

Meanwhile, the Bitcoin price slipped 2.83% and traded at $42,324.09, wiping off much of its recent gains as reported by Coinpedia. Over the past 24 hours, the BTC price has touched a high of $44,034.62, and a low of $41,329.86, indicating a potential crypto market selloff.

Ethereum’s Resilience Amidst Market Volatility

On the other hand, the second largest crypto by market cap, Ethereum marks a noteworthy turnaround, experiencing its sixth consecutive week of inflows at $10 million. This comes after seven weeks ago, Ethereum faced year-to-date outflows of $125 million, showcasing renewed investor confidence.

However, the Ethereum price was down 3.34% to $2,241.14, amid a gloomy sentiment witnessed in the market. The broader impact is evident in the 2.8% slump in the global crypto market cap, settling at $1.58 trillion.

Additionally, the CoinShares report highlights continued favoritism towards altcoins, with Solana and Avalanche attracting inflows of $3 million and $2 million, respectively, in the past week.

As institutional investors navigate the evolving crypto landscape, these nuanced trends underscore the imperative for a strategic reassessment, adapting to the dynamic nature of the market.