Institutional interest in crypto shows negative sentiment after FTX collapse

CoindeskNovember 21, 2022

Crash (1)
Digital asset investment products saw inflows totalling US$44m last week in what represents very mixed sentiment amongst investors since the FTX scandal. Bitcoin received US$14 million in inflows, but when these were countered by inflows into short investment products, the net flows were negative US$4.3 million. ShortBitcoin AuM is now at US$173 million, close to the peak of US$186 million. Total Assets under Management (AuM) across institutional providers is now at the lowest point in 2 years at US$22bn.
Additionally, crypto companies are dealing with severely marked up bond rates, signalling deep fear amongst institutional investors. High bond yields indicate dramatically higher interest rates as well as genuine doubt about crypto's long-term viability among institutional investors.
While companies like Coinbase may have no direct ties to the FTX collapse, its vulnerability to other adverse effects, such as reduced trading levels, may make investing in Coinbase bonds or stocks unappealing. Additionally, the scope of the contagion caused by FTX is still unclear, hanging over the market.