Bullish Sentiment Spills Over To Institutional Investors As Ethereum Inflows Balloons


Institutional investors have been showing bearish sentiment towards Ethereum for the longest time. The second largest cryptocurrency by market capitalization, which initially caught their eye, did not do as well as expected, and the ensuing outflows were huge. However, it appears that sentiment among these large investors is starting to turn positive as Ethereum starts recording inflows.

Ethereum flow balloons

Over the past several weeks, I’ve been using Ethereum The flows were increasing. Although it was not close to the volumes recorded during the bull market, it stopped more than two months of consecutive outflows of the digital asset.

Last week would be no different, given that Ethereum inflows reached $8 million, which is a low volume, but they were streams nonetheless. But the most significant inflows were recorded in the previous week when the digital asset was initially registered and saw inflows of $2.5 million.

Related reading | Over 57,000 traders liquidated as Bitcoin drops below $22,000

Corrected numbers that emerged this week showed that not only was that number very low, but it was down more than $100 million. When the corrected data was published this week, it showed that ETH inflows reached $120 million in a one-week period, implying that it was the largest one-week inflow in a single year.

Ethereum price chart from TradingView.com

It is a testament to the shifting sentiment among institutional investors when it comes to the alternative currency. With the expected consolidation fast approaching, bullish sentiment swept both small and large investors alike, leading to more investment in digital assets.

A week of inflows

Fortunately, Ethereum wasn’t the only cryptocurrency to celebrate another week of inflows. The upside has spread to almost every area of ​​the crypto market, and investors have reacted accordingly. So, from bitcoin to digital asset investment products, inflows have continued.

Related reading | Ethereum weekly exchange net flow points to an increasing accumulation trend

Bitcoin has seen no inflows in the two weeks, recording $16 million for the past week. Just like Ethereum, the Bitcoin numbers for the previous week were incorrect, and the corrected data showed a much higher flow rate for the previous week with a total of $206 million. The flow trend was not limited to long bitcoins alone, though short bitcoins continued their streak with $0.6 million inflows.

Digital asset investment products will prove to be the biggest winner this week with $27 million in inflows. Total assets under management were not pushed back to $30 billion with last week’s inflows. Europe also accounted for the majority of inflows with Switzerland alone reporting $16 million last week. The USA and Germany will see $9 million and $5 million lower inflows.

What this data shows is how investors are looking at the market with the recent recovery. However, given the recent price drop, it remains uncertain whether the inflows will continue through the new week.

Featured image from News Text Area, chart from TradingView.com

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