Institutions are taking advantage of weak prices to make large purchases.
A weekly report from CoinShares shows that institutions perceive the FTX crisis as a opportunity to buy.
The crisis caused by FTX collapse and Alameda Research has dyed the cryptocurrency market red. It has caused a great volatility and a sharp drop in prices.
Institutions and digital asset investment products have taken advantage of this weakness in prices to record the biggest entries of the last 14 weeks. In total, they have acquired 42 million.
Bitcoin has been the cryptocurrency of choice for financial institutions, with inflows of 19 million, the highest since early August. Short-term Bitcoin investment products have also seen inflows of over $12 million.
The second cryptocurrency with the largest institutional inflows during this week has been Ethereum, with a total of 2,5 million. Thirdly, we find the multi-assets with 8,4 million dollars, the highest since June. On the other hand, altcoins saw few inflows, suggesting that institutional investors are avoiding risky investments.
As a counterpart, the blockchain stocks recorded the largest outflows since May 2022, with more than $32 million. This could indicate that more conservative investors are looking for assets with greater stability.
The countries with the highest number of entries were United States, Brazil and Canada, where $29, $8 and $4,3 million were recorded respectively. Switzerland is an exception to this inflow dynamic, experiencing small outflows of $4,6 million, but still the country with the highest number of inflows in 2022.
Stablecoin deposits and DEX activity on the rise
Moreover, Bitcoin has seen a large outflow from exchanges, as has Ether, which has seen a drop in exchange balances similar to that of September 2020, a stage known as DeFi Summer.On the other hand, stablecoin balances remain positive, meaning that users are exchanging their tokens for stablecoins. In fact, more than 1.004 billion USDT, USDC, BUSD and DAI have moved to exchanges since November 10, marking the seventh largest stablecoin inflow.
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