Inflows into cryptocurrency investment products rose sharply last week as institutional investors bought the dip amid the marketwide collapse triggered by FTX and Alameda Research’s bankruptcies.
Digital asset investment products saw inflows totaling $42 million in the week ending Nov. 13, the largest increase in 14 weeks, according to CoinShares data. Bitcoin (BTC) investment products saw the largest inflows at $19 million, followed by multiasset and Ether (ETH) funds at $8.6 million and $5.9 million, respectively.
Investors were also betting on a further deterioration in market conditions, with short Bitcoin products registering $4.8 million in weekly inflows.
Net inflows were recorded across all major regions, led by the United States ($29 million), Brazil ($8 million) and Canada ($4.3 million).
Although investors were buying into crypto investment products, their outlook on blockchain equities soured. CoinShares data revealed that blockchain equities registered $32 million in weekly outflows, the largest since May. Meanwhile, the broader equity market recorded its best week of gains since March, with the technology-heavy Nasdaq Composite gaining 8.1% on weaker-than-expected inflation numbers.