Crypto Fund Inflows Surged Last Week as Investors Bought on FTX-Induced Dip

The largest inflows in 14 weeks, at $42 million, coincided with the crypto market's sharp downturn, triggered by the swift collapse of once-billionaire Sam Bankman-Fried’s business empire.

AccessTimeIconNov 14, 2022 at 5:55 p.m. UTC
Updated Nov 14, 2022 at 8:27 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Crypto funds saw their largest inflows in 14 weeks, with net inflows of $42 million in the seven days ended Nov. 11, according to a CoinShares report on Monday.

The inflows coincided with the crypto market's sharp downturn, triggered by the collapse of Sam Bankman-Fried’s business empire last week, including the FTX exchange and his Alameda Research trading firm.

Bitcoin (BTC), the largest cryptocurrency by market capitalization, has fallen over 20% in the past seven days and was trading at about $16,400 Monday. The CoinDesk Market Index was up 0.8% in the past 24 hours.

Despite the market downturn, the inflows could indicate that investors see “this price weakness as an opportunity” and are “differentiating between ‘trusted’ third parties and an inherently trustless system,” according to CoinShares.

A key footnote to the data is that so-called short-bitcoin investment products – those betting on a price decline – saw $12.6 million in inflows.

“While sentiment is predominantly positive, it has spooked some investors,” the report said.

Switzerland the outlier

Investment products designed to bet on bitcoin gains saw $19 million in inflows last week, the largest since early August.

Regionally, most inflows came from the U.S., at $29 million, followed by Brazil and Canada with $8 million and $4.3 million in inflows, respectively. Switzerland was the outlier, seeing $4.6 million in outflows last week, the report said.

Multi-asset funds saw $8.4 million in inflows, the most since June, according to CoinShares.

Meanwhile, blockchain-related equities saw their largest weekly outflow of $32 million since May, implying that “the more conservative investors in the asset class flew to safety.”

Disclosure

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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Jocelyn Yang

Jocelyn Yang is a markets reporter at CoinDesk. She is a recent graduate of Emerson College's journalism program.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.