Matrixports head of strategy said he believes the market is currently in a wait-and-see environment but could shift after the U.S. mid-term elections in November. 1008 Total views 31 Total shares Listen to article 0:00 News Minor inflows for digital asset investment products over the last few weeks suggest a continued hesitancy toward crypto among institutional investors amid a slowdown in the United States economy.

In the latest edition of CoinShares weekly Digital Asset Fund Flows report, CoinShares head of research James Butterfill highlighted stand-offish institutional sentiment toward crypto investment products, which saw minor inflows for the third week in a row:The flows remain low implying continued hesitancy amongst investors, this is highlighted in investment product trading volumes which were US$886m for the week, the lowest since October 2020.

Between Sept. 26 and Sept. 30, investment products offering exposure to Bitcoin (BTC) saw the most inflows at just $7.7 million, with Ether (ETH) investment products close behind with $5.6 million worth of inflows. Short BTC products represented the only other notable inflows of $2.1 million.

These inflows were offset by more than $3.5 million worth of outflows for investment products offering exposure to altcoins such as Polygon (MATIC), Avalanche (AVAX) and Cardano (ADA), while multi-asset and Solana (SOL) funds also shed $700,000 and $400,000 during that week, respectively.

Commenting on the current state of the crypto market, and the institutional outlook of late, Markus Thielen, head of research and strategy at Singapore-based crypto financial services platform Matrixport, noted that:The market is currently in a wait-and-see environment whereas a potential positive shift after the US Mid-Term elections could have significant regulatory changes.

Last nights US economic data, notably the ISM index, showed that growth has materially slowed down in the US economy and there is now the possibility that the Fed will become less hawkish. The USD rally appears to have lost one of its key drivers and this could signal a pause in rate hikes. This could be very bullish for digital assets into year-end, he added.

Looking at the month-to-date (MTD) flows as of Sept. 30, ETH products have been the most offloaded by institutional investors despite the Merge going through on Sept. 15, with $65.1 million worth of outflows.

Looking back, the Merge was not good for sentiment with outflows totaling US$65m in September. Increased regulatory scrutiny and a strong US Dollar being the likely culprits as the shift to Proof of Stake was executed successfully, said Butterfill.

In contrast, Short BTC funds and BTC investment products saw minor inflows of $15.2 million and $3.2 million MTD. Crypto ETF outflows slowing

While there has been limited action of late for crypto investment products tracked by CoinShares, Bloomberg Intelligence has observed a notable trend in crypto exchange-traded funds (ETFs).

Related: A crumbling stock market could create profitable opportunities for Bitcoin traders

According to Bloomberg Intelligence data, institutional investors offloaded $17.6 million from crypto ETFs during Q3 2022, providing a stark contrast to the record $683.4 million withdrawn from such funds in Q2 2022.

The outflows mainly took place in the past two months. In July, investors poured upwards of $200 million into crypto ETFs, Bloomberg noted in a Sept. 30 article, adding that the decreased outflows were likely due to narrow fluctuations in crypto prices during Q3. #Bitcoin #Altcoin #Ethereum #ETF #Report #Data #CoinShares Related News The concept and future of decentralized Web3 domain names Enhanced KYC checks can be a win-win for crypto exchanges and consumers here’s why Web3 is the solution to Ubers problem with hackers Bitcoin risks worst weekly close since 2020 as BTC price dices with $19K Price analysis 9/26: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIB Price analysis 9/28: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIB

Articles You May Like

China ‘played a great game’ on lithium and we’ve been slow to react, industry CEO says
DCG’s Barry Silbert reveals crypto firm has $2 billion in debt as he tries to calm investors after FTX
Hear Kinzinger’s prediction about McCarthy if he’s elected House Speaker
These are the best electric bike sales for Cyber Monday that are already running [Updated]
Musk says Twitter to launch ‘Verified’ service next week with a ‘gold check’ for companies