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CoinShares’ Butterfill suggests there is a “persistent hesitation” among investors




Minor inflows into digital asset investment products over the past few weeks indicate a “persistent hesitation” toward cryptocurrencies among institutional investors amid a slowdown in the US economy.

In the latest edition of CoinShares’ weekly report on “Digital Fund Flows for Assets,” James Butterville, Head of Research at CoinShares, said: highlighted Stalled institutional sentiment towards cryptocurrency investment products, which saw “slight flows” for the third week in a row:

“Flows remain low indicating continued indecision among investors, which is evidenced by investment product volumes that reached $886 million for the week, the lowest level since October 2020.”

Between September 26 and September 30, investment products display exposure to Bitcoin (BTC).BTC(The largest inflows were just $7.7 million, with Ether)ETH) Investment products close to that with $5.6 million in inflows. The BTC short products represent the only other notable inflows of $2.1 million.


These inflows were offset by more than $3.5 million in outflows from investment products offering exposure to altcoins such as Polygon (matic), Avalanche (fax(and Cardano)ADA), while multi-origin and Solana (SolThe funds also lost $700,000 and $400,000 during that week, respectively.

Commenting on the current state of the cryptocurrency market, and recent institutional outlook, Markus Thielen, Head of Research and Strategy at Singapore-based crypto financial services platform Matrixport, noted the following:

“The market is currently in a wait-and-see environment, while a potentially positive turn after the US midterm elections could have significant regulatory changes.”

“Last night US economic data, particularly the ISM index, showed that growth has slowed materially in the US economy and there is now a possibility that the Fed will become less hawkish. It appears that the rally in the dollar has lost one of its main drivers and this may signal a pause in price hikes. Interest. This could be very bullish for digital assets through the end of the year.”

Looking at month-to-date (MTD) flows as of September 30th, ETH products were the most Offloaded by institutional investors In spite of merge being On September 15, it had $65.1 million in outflows.

“Looking back, the consolidation was not good for sentiment with outflows totaling $65 million in September. Increased regulatory scrutiny and a stronger dollar is likely the reason the shift to proof of stake has been successfully implemented,” Butterfly said.


In contrast, BTC short funds and BTC investment products saw slight inflows of $15.2 million and $3.2 million per day.

ETF Cryptocurrency Flows Slow

While there has been limited action recently for crypto investment products tracked by CoinShares, Bloomberg Intelligence has noticed a notable trend in cryptocurrencies. Exchange Traded Funds (ETFs).

Related: A tumbling stock market can create profitable opportunities for bitcoin traders

According to data from Bloomberg Intelligence, institutional investors dumped $17.6 million from crypto-traded funds during the third quarter of 2022, providing a stark contrast to the “record figure of $683.4 million withdrawn from these funds” in the second quarter of 2022.

The outflows have mainly occurred in the past two months. In July, investors poured more than $200 million into crypto-traded funds,” Bloomberg pointed In an article published on September 30, he added that the decline in outflows was likely due to “tight swings” in cryptocurrency prices during the third quarter.