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Crypto Flows Show Institutions are Still Buying

Despite market panic, crypto investment products saw $441M in inflows last week.
Jack Inabinet Jack Inabinet Jul 8, 20241 min read
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Crypto Flows Show Institutions are Still Buying

Sellers were in control of crypto markets last week, but recent price weakness was taken as a buying opportunity by many institutional investors.

What’s the Scoop?

  • Buying Panic: Despite dips in crypto prices many have attributed to sell pressure from Mt. Gox and the German Government, data released from CoinShares shows digital asset investment products saw $441M in inflows last week.
  • Seeking Risk: Bitcoin may have enjoyed the lion’s share of total crypto product inflows ($398M), but a 90% allocation to BTC is unusually low. Investors seemingly chose to diversify into altcoins last week, with Solana products experiencing 28% of year-to-date inflows last week.

Bankless Take:

Crypto prices have been moving lower since June, but investors decided to accumulate on last week’s dip, motivated by beliefs that multi-billion dollar asset forfeiture sales presented a discounted buying opportunity.

While there is always a risk these flows reverse, increasing breadth and risk-on sentiment demonstrated through the unusually low allocation to BTC combined with a stock market that continues to establish new all-time highs suggests crypto prices may rally in the near term.

 

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Jack Inabinet

Written by Jack Inabinet

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Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial apartment development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business and remains based out of the Seattle area.

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