Amid FTX collapse, crypto funds see largest inflows in 14 weeks

Inflows into cryptocurrency concern products roseate sharply past week arsenic organization investors bought the dip amid the marketwide illness triggered by FTX’s and Alameda Research’s bankruptcies. 

Digital plus concern products saw inflows totaling $42 cardinal successful the week ending Nov. 13, the largest summation successful 14 weeks, according to CoinShares data. Bitcoin (BTC) concern products saw the largest inflows astatine $19 million, followed by multiasset and Ether (ETH) funds astatine $8.6 cardinal and $5.9 million, respectively.

Investors were besides betting connected a further deterioration successful marketplace conditions, with abbreviated Bitcoin products registering $4.8 cardinal successful play inflows.

Net inflows were recorded crossed each large regions, led by the United States ($29 million), Brazil ($8 million) and Canada ($4.3 million).

Although investors were buying into crypto concern products, their outlook connected blockchain equities soured. CoinShares information revealed that blockchain equities registered $32 cardinal successful play outflows, the largest since May. Meanwhile, the broader equity marketplace recorded its champion week of gains since March, with the technology-heavy Nasdaq Composite gaining 8.1% connected weaker-than-expected ostentation numbers.

Related: Crypto Biz: Crypto’s time of reckoning has arrived

The cryptocurrency marketplace faced renewed sell-side unit past week arsenic Sam Bankman-Fried’s FTX exchange filed for bankruptcy pursuing a tally connected its assets. The slope tally was triggered by Binance’s abrupt liquidation of FTX Token (FTX) connected Nov. 6. Binance CEO Changpeng Zhao expressed involvement successful buying retired the collapsing derivatives speech but backed retired little than 24 hours aboriginal owed to an evident spread successful FTX’s finances. It has since travel to airy that FTX is sitting connected astir $8 cardinal successful liabilities.

Full disclosure: Binance ne'er shorted FTT. We inactive person a container of arsenic we stopped selling FTT aft SBF called me. Very costly call. https://t.co/3A6wyFPGlm

— CZ Binance (@cz_binance) November 14, 2022

Crypto prices look to person stabilized pursuing past week’s rout, with Bitcoin presently hovering conscionable northbound of $16,500, according to Cointelegraph’s BTC terms index. Market sentiment, however, could instrumentality months oregon adjacent longer to recover.