{"id":11216,"date":"2022-05-30T21:45:22","date_gmt":"2022-05-30T21:45:22","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/nft\/record-inflows-into-bitcoin-as-safety-seeking-investors-buy-the-dip-ethereum-outflows-double\/"},"modified":"2022-05-30T21:45:24","modified_gmt":"2022-05-30T21:45:24","slug":"record-inflows-into-bitcoin-as-safety-seeking-investors-buy-the-dip-ethereum-outflows-double","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/nft\/record-inflows-into-bitcoin-as-safety-seeking-investors-buy-the-dip-ethereum-outflows-double\/","title":{"rendered":"Record Inflows into Bitcoin as ‘Safety’-Seeking Investors Buy the Dip; Ethereum Outflows Double"},"content":{"rendered":"
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Source: Adobe\/memorystockphoto<\/figcaption><\/figure>\n

\u00a0<\/p>\n

Investors in funds backed by bitcoin (BTC) appear to be taking advantage of the lower prices, adding close to USD 299m to such funds last week, or the most this year, while ethereum (ETH) outflows more than doubled.\u00a0<\/p>\n

Per crypto investment and research firm CoinShares <\/strong>data, the inflows into cryptoasset-backed funds last week were the largest seen so far this year, led by almost USD 300m that flowed into BTC funds. However, due to outflows of nearly USD 27m from ethereum (ETH) funds and outflows of USD 5.3m from solana (SOL) funds, the net inflows for the week ended at USD 274.2m. A week earlier, BTC inflows reached USD 45m, while ETH saw outflows of almost USD 13m.<\/p>\n

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MTD – month-to-date; YTD – year-to-date; AUM – assets under management. Source: CoinShares<\/figcaption><\/figure>\n

The BTC inflows are \u201ca strong signal\u201d that investors saw the collapse of terraUSD (UST) and the Terra<\/strong> network\u2019s native LUNA token as a buying opportunity, analysts at CoinShares wrote. The strong inflows were also described as a flight to \u201crelative safety\u201d within the crypto ecosystem. In the past week, BTC dropped 12%, while other coins from the top 10 list dived 16%-28%. Still, some capital did find its way to so-called multi-asset investment products, with USD 8.6m in inflows.\u00a0<\/p>\n

The positive outlook was not evenly distributed geographically. While North American investors were responsible for inflows of USD 312m for the week, a net outflow of USD 312m was seen from European investors, the data showed.<\/p>\n

In the blockchain equity space, CoinShares said investors \u201cpanicked\u201d over the UST collapse, puling out USD 51m in total. The outflow was described as the third-largest weekly outflow on record.<\/p>\n

In terms of fund providers, Purpose<\/strong>, the company behind a Canada-listed physically-backed bitcoin exchange-traded fund (ETF), recorded the largest inflows for the week of USD 284.8m.<\/p>\n

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Source: CoinShares<\/figcaption><\/figure>\n

Institutional buying<\/h2>\n

Echoing CoinShares\u2019 data, Ki Young Ju, CEO of the crypto analysis provider CryptoQuant<\/strong>, said earlier on Monday that institutional investors now have become net buyers of BTC with the help of market makers.<\/p>\n

According to him, institutions have largely absorbed the BTC supply that has come from the UST collapse, as the Luna Foundation Guard<\/strong> (LFG) sold off its reserves in order to defend UST\u2019s peg.\u00a0<\/p>\n

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\u201cI think institutions tried to stack BTC from USD 30k but had to rebuild the bid walls at USD 25k due to the unexpected LFG selling,\u201d Ju said<\/a>.<\/p>\n<\/blockquote>\n

He followed up later by pointing to the confirmation that LFG has sold off the vast majority of its BTC reserves, saying that institutions on the Coinbase<\/strong> exchange have bought a lot of it.<\/p>\n

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_____
<\/strong>
– Bitcoin Halfway to Next Halving \u2013 What Can History Teach Us?
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– \u2018Nobody Big Enough\u2019 to Manipulate Bitcoin, but Altcoins Offer Superior Returns, Pantera\u2019s Morehead Says
– Two Clues for When Bitcoin Downturn Might End<\/p>\n

– Bitcoin Price Forecast for 2022 Cut Once Again as Break ‘Only’ Above USD 80K Now Expected
– As Bitcoin Keeps Tanking, Arthur Hayes Joins Chorus of USD 1M BTC Predictors and Warns of ‘The Doom Loop’<\/p>\n<\/p><\/div>\n