The money flowing into crypto investment products have been positive for 10 consecutive weeks, with a total inflow of $1.76 billion.
While Bitcoin (BTC) hovers around $42,000, sentiment has been extremely positive. This is evident from the data of digital asset investment products’ inflows.
Crypto Inflows Reach October 2021 Highs
“Crypto Investment vehicles such as exchange-traded products (ETPs) and Trusts are important means for institutional investors and other big investors to get crypto exposure. They prefer digital investment products over direct crypto custody due to regulatory challenges or other accounting-related reasons.”
The screenshot below shows that the inflows have been positive for the past 10 weeks, totaling $1.76 billion. CoinShares explained that the amount is highest since October 2021, when the market was near its peak due to the hype of the Bitcoin Futures exchange-traded fund (ETF).
Additionally, the total assets under management (AuM) of digital asset investment products grew by over 107% in 2023. Not to mention, the inflows of the past 10 weeks contribute 4% to the total AuM of crypto investment products.
Time to Practice Caution?
The spectacular growth in inflows comes as markets increasingly turn greedy. Even mainstream media companies such as Bloomberg predicted a Bitcoin supercycle and forecasted a price surge of up to $500,000.
Investors should be extremely cautious when the Fear and Greed index is in the “Greed” territory. Sometimes, the markets may start to pull back when the sentiment is extremely greedy.
An X (Twitter) user, WhaleWire, asked their 500,000 followers to be “very careful.” They wrote:
“Bloomberg is now predicting that this is the start of a new “super cycle” that will push #Bitcoin above $500K.
“When the corrupt mainstream media is pushing out crazy unrealistic targets like this at the peak, you should be very careful. This is a huge red flag.
“These kinds of headlines always happen at the top.”
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