The cryptocurrency market is rocking, but institutions are increasing their exposure for the 5e consecutive week. Ether, multi-actives and Solana are favorite products.
The crypto-asset market is currently going through a bad period, after a euphoric start to the month, following on from August. Bitcoin fell below $ 40,000, before rising as quickly.
Ethereum is also showing a decline since its price now hovers below $ 3,000. And with a head and shoulders graphical setup, Ether could lift to $ 2,000.
Bitcoin in the lead and Solana in deceleration
But despite these brutal trajectories, institutional investors increased their exposure. According to CoinShares, this is therefore a fifth consecutive week of increased capital inflows into crypto products.
During the previous week (through September 19), these instruments had a positive balance sheet of $ 42 million. Even Bitcoin, despite being battered on this ground, recorded an inflow of $ 15 million.
However, over the past 16 weeks, this has only happened three times. The sign therefore that institutional investors seem to regain confidence. For once, BTC funds supplant those of other cryptocurrencies.
Also under pressure, Ethereum (ETH) and Solana (SOL) thus capture several million dollars. Ether products show a positive balance of $ 6.6 million. Solana, despite a major outage (ultimately attributed to an attack), is at $ 4.8 million.
This is even more than multi-asset products, which have always been positive since the start of the year, including at the height of the crisis. Last week the balance was $ 3.7 million. This portfolio diversification is resistant to volatility.
A week of observation for institutions?
The dynamics of institutional products vary markedly, however. A week earlier, the drop in the price of Ether by 10% held back investors (- $ 6.3 million). So it is now a revival for Ether.
It may be very different for the current week, with a ETH price under $ 3K. However, in the futures market, investors continue to favor the upside. As far as Solana is concerned, the trend is for a marked slowdown.
It must be said that the last few weeks were euphoric. Institutional assets under management thus rose to nearly $ 100 million, including $ 49.4 million more over just 7 days. This figure was therefore divided by 10 last week.
What about the trend between September 20 and 26? Investors are more likely to play it safe. Turbulence was strong with two major economic events in China and the United States.