Crypto investment volume drops to 2-year lows reports
As the so-called Uptober did not prove profitable for cryptocurrency investors, many traders took profits and trimmed their positions as Bitcoin recovered from its previous lows. Low cryptocurrency prices and the protracted crypto winter ultimately pushed crypto mutual funds to a two-year record low.
The “Digital Asset Fund Flows Report”, published on October 24 by European digital asset investment firm CoinShares, finds that a total of $5 million in crypto investments have been drained in the past week.
More specifically, short product investment volume under management fell to $758 million compared to weekly volume of $7 billion over the past year around this time, as bulls took control of the market. The apathetic period for the crypto market that started in October has recorded the lowest investment volume since 2020.
Bitcoin (BTC) recorded continuous minor inflows of $4.6 million for the sixth week. Alternatively, BTC’s card investment product saw outflows of about $7.1 million, according to the report.
BTC’s short product inflow ratio still shows some positive signs compared to other asset trading investment products. Although the numbers have been mixed, the month of October has seen the highest outflow for short BTC at $15 million. This amounts to 10% of the total assets under management.
In the report, CoinShares also discovered the countries that experienced notable outflows of crypto investments in October. Sweden took the lead in this case, and outflows wiped out $4.5 million in total. Likely, Canada and the United States recorded smaller outflows of $1.9 million and $1.2 million, respectively. On the other hand, Brazil, Germany and Switzerland had a smaller influx.
Crypto investment funds for Ethereum faced massive outflows in contrast to Bitcoin
In particular, the top second-ranked cryptocurrency Ethereum has had the effect of outflows of investment products for three consecutive weeks, totaling around $2.5. Afterwards, the value of outflows increased to a whopping $11.5 million after the merger. And now only 0.2% of assets under management circulate. XRP, on the other hand, is swinging supply of $8 million, which is far from previous records since Ripple’s legal battle with the US Security and Exchange Commission (SEC) seems to have ended.
On a year-to-date basis, Bitcoin investment funds have seen inflows worth around $296.2 million. Meanwhile, Ethereum funds contrarily suffered $371.2 million in outflows. The numbers indicate that, in this time of crypto winter, cryptocurrency investors are keeping their eyes on Bitcoin’s relative stability and long-term movements.
Institutional securities firms are not encouraged by investors since the market climate has changed and crypto downtrends have chained the spirits of traders. CoinShares, a prominent digital investment company in Europe, has also lowered its second-quarter revenue to £14.2m from its second-quarter turnover of £19.6m last year.
Featured image from Pixabay and chart from TradingView.com
