Bitcoin Bargain? Investors Put Money Into Crypto Funds for Second Straight Week

Cryptocurrency funds attracted $19 million of new money last week, suggesting investors are cautiously adding to positions, with prices depressed compared with year-end levels.

Jan 31, 2022 at 7:26 p.m. UTC

Angelique is a market contributor at CoinDesk.

Investors put money into cryptocurrency funds for a second straight week as the bitcoin market stabilized following one of its worst-ever starts to a year.

Crypto funds saw inflows of $19 million during the seven days through Jan. 28, according to a report Monday from the digital-asset manager CoinShares.

While the increase looks small relative to some of the $200 million-plus weeks of inflows in 2021, the trend suggests investors are cautiously adding to positions "at these depressed price levels," the CoinShares analysts wrote.

Investors put some $14 million into crypto funds during the prior week – reversing five straight weeks of redemptions that totaled $532 million.

Bitcoin (BTC) is down 17% so far this year, changing hands around $38,500 at press time. The price is still well off the all-time high around $69,000 reached in November 2021.

Notably, some $22.1 million flowed into bitcoin-focused funds last week, while Ethereum-focused funds suffered outflows of $26.8 million.

Prices for the Ethereum blockchain's native cryptocurrency, ether (ETH), are down 27% this year to about $2,700.

"Ethereum continues to suffer from negative sentiment," CoinShares wrote.

Multi-asset funds – focused on a combination of coins – brought in $32 million, the most since June 2021. This suggests "investors are adopting a diversified investment approach," according to CoinShares

But funds focused on Solana, Polkadot and Cardano all saw outflows last week, "suggesting investors are shunning altcoins," CoinShares wrote.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Angelique is a market contributor at CoinDesk.

CoinDesk - Unknown

Angelique is a market contributor at CoinDesk.

Trending

1
CoinDesk - Unknown
Jae Kwon Returns to ‘NewTendermint’ to Battle for the Soul of Cosmos

Ignite, which rebranded from Tendermint in February, will split into two entities: Ignite and NewTendermint.

Ignite, which rebranded from Tendermint in February, will split into two entities: Ignite and NewTendermint.

CoinDesk - Unknown
2
CoinDesk - Unknown
Crypto Whales Ditched Tether for USDC After Stablecoin Panic

The UST failure prompted large investors on the Ethereum blockchain to leave USDT for the perceived safety of its biggest competitor.

The UST failure prompted large investors on the Ethereum blockchain to leave USDT for the perceived safety of its biggest competitor.

CoinDesk - Unknown
3
CoinDesk - Unknown
FTX’s Bankman-Fried Pitches CFTC on Directly Clearing Customers’ Crypto Swaps

The crypto exchange’s founder and CEO made his case at a Washington D.C. roundtable, while mainstream derivatives firms painted his ideas as dangerous.

The crypto exchange’s founder and CEO made his case at a Washington D.C. roundtable, while mainstream derivatives firms painted his ideas as dangerous.

CoinDesk - Unknown
4
CoinDesk - Unknown
Terra lanzaría su snapshot esta semana: cómo serán distribuidos los 'nuevos' LUNA

El suministro de tokens en la nueva blockchain será de poco más de $116 millones, dijeron los desarrolladores.

El suministro de tokens en la nueva blockchain será de poco más de $116 millones, dijeron los desarrolladores.

CoinDesk - Unknown