Minor inflows for digital asset investment products over the last few weeks suggest a “continued hesitancy” toward crypto among institutional investors amid a slowdown in the United States economy.
In the latest edition of CoinShares’ weekly “Digital Asset Fund Flows” report, CoinShares head of research James Butterfill highlighted stand-offish institutional sentiment toward crypto investment products, which saw “minor inflows” for the third week in a row:
“The flows remain low implying continued hesitancy amongst investors, this is highlighted in investment product trading volumes which were US$886m for the week, the lowest since October 2020.”
Between Sept. 26 and Sept. 30, investment products offering exposure to Bitcoin (BTC) saw the most inflows at just $7.7 million, with Ether (ETH) investment products close behind with $5.6 million worth of inflows. Short BTC products represented the only other notable inflows of $2.1 million.
These inflows were offset by more than $3.5 million worth of outflows for investment products offering exposure to altcoins such as Polygon (MATIC), Avalanche (AVAX) and Cardano (ADA), while multi-asset and Solana (SOL) funds also shed $700,000 and $400,000 during that week, respectively.
Commenting on the current state of the crypto market, and the institutional outlook of late, Markus Thielen, head of research and strategy at Singapore-based crypto financial services platform Matrixport, noted that:
“The market is…
