Institutional investors are taking advantage of the “extreme price weakness” being seen in the cryptocurrency space after the collapse of the popular cryptocurrency exchange FTX and its sister company Alameda Research.
According to CoinShares’ Digital Asset Fund Flows report, cryptocurrency investment products have seen their largest inflows in 14 weeks last week, totaling $42 million. The inflows, the firm wrote, started later in the week after crypto prices collapsed over FTX’s liquidity crisis. The firm wrote:
The inflows began later in the week on the back of extreme price weakness prompted by the FTX/Alameda collapse. It suggests that investors see this price weakness as an opportunity, differentiating between “trusted” third parties and an inherently trustless system.
According to the firm’s data, weekly flows to products focused on the flagship cryptocurrency Bitcoin hit$18.8 million, while flows to products offering investors exposure to Ethereum hit $2.5 million.
Products betting against BTC also saw inflows of $12.6 million, suggesting some institutional investors are betting against BTC. Multi-asset investment products, or those offering exposure to multiple cryptocurrencies, saw $8.4 million of inflows.
As CryptoGlobe reported, a popular crypto analyst has suggested that the price of BTC could soon hit the bottom of the ongoing bear market after the collapse of the popular cryptocurrency trading platform FTX.
Pseudonymous analyst Rekt Capital noted that previous Bitcoin bear cycles saw the collapse of a cryptocurrency trading platform before bottoming out. In a follow-up, the analyst noted that historically Bitcoin’s price “trends to bottom 517-547 days prior to the next Halving event.” The next Halving, he added, is less than 540 days away.
As CryptoGlobe reported, strategists at Wall Street giant JPMorgan have also suggested that the price of $BTC could collapse to $13,000 amid a “cascade of margin calls” triggered by the liquidity crisis at popular cryptocurrency exchange FTX.