AMID FTX COLLAPSE, CRYPTO FUNDS SEE LARGEST INFLOWS IN 14 WEEKS
The cryptocurrency market, often a roller coaster of volatility, experienced a dramatic week marked by the high-profile collapse of FTX, once a leading crypto exchange. [ Octo ] MicroStrategy s Michael Saylor Calls for Freedom of Choice in Bitcoin Custody Amid Backlash Bitcoin [ Octo ] Kraken Introduces Ethereum Restaking Feature Using EigenLayer Protocol EthereumAmid this turmoil, however, a surprising trend emerged: digital asset investment products witnessed their most significant inflows in 14 weeks. Bankrupt crypto exchange FTX has kicked off its second round of repayments to creditors, disbursing over $5 billion to individuals and entities with approved claims. This follows the firm s initial payout of $1.9 billion and marks a major step in the collapsed exchange s bankruptcy proceedings.According to CoinShares data, a total of $42 million flowed into these products in the week ending November 13th. The Bitcoin price briefly fell below $16,000 last week as Sam Bankman-Fried s FTX Group filed for bankruptcy. Amid FTX collapse, crypto funds see largest inflows in 14 weeks Crypto Information from across the InternetThis influx suggests that institutional investors, far from panicking, saw the FTX-induced dip as a buying opportunity.But what drove this seemingly counterintuitive behavior?Was it a calculated gamble, a belief in the long-term resilience of crypto, or something else entirely? [ Ma ] Crypto ETPs see $1.7B in outflows, longest streak since 2025 Altcoin [ Ma ] BlackRock s Bitcoin ETF flips gold fund Litecoin [ Ma ] Too Volatile Bank of Korea Rejects Bitcoin as Foreign Reserve Asset BitcoinThis article will delve into the specifics of these inflows, examining which cryptocurrencies benefited most, exploring the factors that contributed to this phenomenon, and assessing the implications for the future of the digital asset market. Inflows into cryptocurrency investment products rose sharply last week as institutional investors bought the dip amid the marketwide collapse triggered by FTX and Alameda Research sWe'll also consider the ongoing FTX saga, including the repayment plan for creditors and the potential impact on investor sentiment.
Understanding the Crypto Inflows During the FTX Crisis
The collapse of FTX, spearheaded by Sam Bankman-Fried, sent shockwaves through the crypto landscape.The price of Bitcoin briefly dipped below $16,000 as the exchange filed for bankruptcy. Digital asset investment products saw the largest inflows for 14 weeks totalling US$42m. The inflows began later in the week on the back of extreme price weakness prompted by the FTX/AlamedaTypically, such a dramatic event would trigger widespread panic and outflows from crypto funds. Digital asset investment products saw inflows totaling $42 million in the week ending Nov. 11, the largest increase in 14 weeks, according to CoinShares data. Bitcoin investment products saw the largest inflows at $19 million, followed by multiasset and Ether funds at $8.6 million and $5.9 million, respectively.However, this time, the opposite occurred.Why?
One primary reason is the **""buy the dip""** mentality among institutional investors.These sophisticated players often have a longer-term investment horizon and are less susceptible to emotional reactions.When prices plummet due to events like the FTX collapse, they see an opportunity to acquire assets at a discounted rate.
Another factor is the increasing maturity of the cryptocurrency market. Related: Amid FTX collapse, crypto funds see largest inflows in 14 weeks. Crypto s push for mass adoption may have been hindered by the recent collapse of FTX and the firm s subsequent Chapter 11 filing.While the FTX collapse was undoubtedly damaging, it didn't necessarily invalidate the underlying technology and use cases of blockchain and cryptocurrencies.Many investors remain optimistic about the future potential of these assets, despite the setbacks.
Which Cryptocurrencies Benefited the Most?
CoinShares data reveals that Bitcoin (BTC) investment products saw the largest inflows at $19 million.This suggests that even in times of uncertainty, Bitcoin continues to be viewed as a safe haven asset within the crypto space. Digital asset investment products saw inflows totaling $42 million in the week ending Nov. 13, the largest increase in 14 weeks, according to CoinShares data. Bitcoin ( BTC ) investment products saw the largest inflows at $19 million, followed by multiasset and Ether ( ETH ) funds at $8.6 million and $5.9 million, respectively.Following Bitcoin, multi-asset funds experienced inflows of $8.6 million, and Ether (ETH) funds saw $5.9 million in inflows.The diversification strategy of multi-asset funds, combining various cryptocurrencies, might appeal to investors seeking to mitigate risk during volatile periods.
- Bitcoin (BTC): $19 million inflows
- Multi-Asset Funds: $8.6 million inflows
- Ether (ETH): $5.9 million inflows
The FTX Fallout: Repayments and Market Sentiment
While the inflows offer a glimmer of hope, the FTX saga continues to cast a shadow over the crypto market. The largest inflows in 14 weeks, at $42 million, coincided with the crypto market's sharp downturn, triggered by the swift collapse of once-billionaire Sam Bankman-Fried s businessThe bankruptcy proceedings are complex and ongoing, and the full extent of the damage caused by FTX's collapse is still being assessed.
However, there are some positive developments.A US bankruptcy court has approved FTX's plan to distribute between $14.7 billion and $16.5 billion worth of payouts to the exchange's former customers.The plan aims to compensate 98% of creditors with approximately 119% of the value of their holdings on the day FTX filed for bankruptcy in November 2025.While this may seem like a long wait, it represents a significant step towards recovering lost funds.
Furthermore, FTX has already begun the second round of repayments to creditors, disbursing over $5 billion to individuals and entities with approved claims. Inflows into cryptocurrency investment products rose sharply last week as institutional investors bought the dip amid the marketwide collapse triggered by FTX s and Alameda Research s bankruptcies. Digital asset investment products saw inflows totaling $42 million in the week ending Nov. 13, the largest increase in 14 weeks, according to CoinShares data. Bitcoin (BTC) investment products [ ]This follows the initial payout of $1.9 billion and signifies substantial progress in the bankruptcy proceedings.These repayments, even if partial, can help restore confidence in the market and mitigate the negative impact of the FTX collapse.
Impact on Investor Confidence
The FTX collapse undoubtedly shook investor confidence in the cryptocurrency market.However, the subsequent inflows into crypto funds suggest that some investors are willing to look past the scandal and focus on the long-term potential of digital assets. ⚡ Curated Crypto Currency News ⚡Crypto Speaks To Me does not claim that curated content will be read with 100% accuracy.You can find the original post at: htThe repayment plan also plays a role in rebuilding trust. Inflows into cryptocurrency investment products rose sharply last week as institutional investors bought the dip amid the marketwide collapse triggered by FTX and Alameda Research s bankruptcies. Digital asset investment products saw inflows totaling $42 million in the week ending Nov. 13, the largest increase in 14 weeks, according to CoinShares data. Bitcoin (BTC) investment products [ ]The promise of recovering a significant portion of their investments provides some reassurance to affected creditors and could encourage them to re-enter the market in the future.
However, the FTX saga serves as a stark reminder of the risks associated with investing in cryptocurrencies.It highlights the importance of due diligence, risk management, and choosing reputable exchanges and custodians.The industry needs to strengthen its regulatory framework and improve transparency to protect investors from future collapses.
Factors Driving the Crypto Inflows
Several factors likely contributed to the surprising inflows into cryptocurrency investment products amid the FTX turmoil.Understanding these factors can provide valuable insights into the dynamics of the crypto market and inform future investment decisions.
- Institutional Adoption: The increasing participation of institutional investors in the crypto market has significantly impacted market behavior. Amid FTX collapse, crypto funds see largest inflows in 14 weeksThese investors typically have larger capital reserves and a longer-term investment horizon, making them less prone to panic selling during market downturns.
- ""Buy the Dip"" Strategy: As mentioned earlier, the ""buy the dip"" strategy is a common approach among institutional investors. Amid FTX collapse, crypto funds see largest inflows in 14 weeks Cointelegraph By Sam Bourgi Uncategorized NovemThey see market corrections as opportunities to acquire assets at a discount, anticipating future price appreciation.
- Long-Term Potential: Despite the setbacks, many investors remain optimistic about the long-term potential of cryptocurrencies and blockchain technology. Amid FTX collapse, crypto funds see largest inflows in 14 weeks. Digital asset investment products saw inflows totaling $42 million in the week ending Nov. 13, the largest increase in 14 weeks, according to CoinShares data.They believe that these technologies have the potential to disrupt various industries and create new opportunities for growth.
- Diversification Benefits: Some investors view cryptocurrencies as a way to diversify their portfolios and reduce overall risk. Inflows into cryptocurrency investment products rose sharply last week as institutional investors bought the dip amid the marketwide collapse triggered by FTX and Alameda Research s bankruptcies.Cryptocurrencies have a low correlation with traditional assets like stocks and bonds, which can help to improve portfolio performance during market downturns.
- Regulatory Clarity (in some regions): While regulatory uncertainty remains a challenge in many jurisdictions, some countries have made progress in establishing clear regulatory frameworks for cryptocurrencies.This regulatory clarity can attract institutional investors and promote greater market stability.
Comparing to Previous Outflows
It's important to note that prior to these inflows, crypto ETPs (Exchange Traded Products) experienced significant outflows, totaling $1.7 billion.This marked the longest streak of outflows since 2025.This context highlights the volatility of investor sentiment and the sensitivity of the market to events like the FTX collapse. The Bitcoin price briefly fell below $16,000 last week as Sam Bankman-Fried s FTX Group filed for bankruptcy. Inflows into cryptocurrency investment products rose sharply last week as institutional investors bought the dip amid the marketwide collapse triggered by FTX and Alameda Research s bankruptcies. Digital asset investment products saw inflows totaling $42 million in the week endingThe sudden shift from outflows to inflows underscores the potential for rapid changes in market dynamics and the importance of staying informed and adaptable.
The Role of Bitcoin and Ethereum
As the leading cryptocurrencies by market capitalization, Bitcoin and Ethereum play a crucial role in shaping the overall crypto market. In October, a US bankruptcy court greenlit FTX s plan to distribute between $14.7 billion and $16.5 billion worth of payouts to the crypto exchange s former customers. The plan calls for 98% of the exchange s creditors to receive approximately 119% of the value of their holdings on the day FTX filed for bankruptcy in November 2025.The inflows into Bitcoin and Ether investment products reflect their continued dominance and the confidence that investors have in their long-term prospects.
Bitcoin's reputation as a ""digital gold"" and its limited supply continue to attract investors seeking a store of value.Its established track record and network effect make it a relatively safer bet compared to smaller, less established cryptocurrencies.
Ethereum, on the other hand, is the leading platform for decentralized applications (dApps) and smart contracts.Its ongoing transition to Ethereum 2.0, which aims to improve scalability and energy efficiency, is also a positive factor for investors.The increasing adoption of DeFi (Decentralized Finance) applications on the Ethereum network further strengthens its value proposition.
However, it's important to acknowledge that both Bitcoin and Ethereum are still subject to significant price volatility.Investors should be prepared for potential drawdowns and carefully consider their risk tolerance before investing in these assets.
Actionable Advice for Crypto Investors Amidst Market Volatility
The recent events surrounding FTX and the subsequent market fluctuations offer valuable lessons for crypto investors.Here's some actionable advice to navigate these turbulent times:
- Do Your Own Research (DYOR): Thoroughly research any cryptocurrency or crypto project before investing.Understand the underlying technology, the team behind it, and the potential risks involved.
- Diversify Your Portfolio: Don't put all your eggs in one basket. Inflows into cryptocurrency investment products rose sharply last week as institutional investors bought the dip amid the marketwide collapse triggered by FTX s and Alameda Research s bankruptcies. Digital asset investment products saw inflows totaling $42 million in the week ending Nov. 13, the largest increase in 14 weeks, according to CoinShares data. Bitcoin (BTC) investment productsDiversify your crypto holdings across different assets to mitigate risk.
- Manage Your Risk: Only invest what you can afford to lose. Digital asset investment products saw inflows totaling $42 million in the week ending Nov. 13, the largest increase in 14 weeks, according to CoinShares data. Bitcoin (BTC) investment products saw the largest inflows at $19 million, followed by multiasset and Ether (ETH) funds at $8.6 million and $5.9 million, respectively.Cryptocurrency investments are inherently risky, and you should be prepared for potential losses.
- Use Reputable Exchanges and Custodians: Choose established and reputable exchanges and custodians to store your cryptocurrencies.Look for platforms with strong security measures and a proven track record.
- Stay Informed: Keep up-to-date with the latest news and developments in the crypto market. [ad_1]Inflows into cryptocurrency investment products rose sharply last week as institutional investors bought the dip amid the marketwide collapse triggered by FTX s and Alameda Research s bankruptcies. Digital asset investment products saw inflowsFollow reputable news sources and industry experts to stay informed about potential risks and opportunities.
- Consider Dollar-Cost Averaging (DCA): DCA involves investing a fixed amount of money at regular intervals, regardless of the price.This strategy can help to smooth out price fluctuations and reduce the impact of volatility.
- Be Patient: Cryptocurrency investments are typically long-term investments.Don't expect to get rich quick.Be patient and focus on the long-term potential of the asset.
The Future of Crypto: Resilience and Regulation
The crypto market has proven to be remarkably resilient in the face of adversity. Amid FTX collapse, crypto funds see largest inflows in 14 weeks Novem 0:03. Amid FTX collapse, crypto funds see largest inflows in 14 weeks.Despite numerous setbacks and challenges, it has continued to grow and evolve.The FTX collapse was a significant blow, but it also served as a wake-up call for the industry.It highlighted the need for stronger regulatory frameworks, greater transparency, and improved risk management practices.
The future of crypto will likely be shaped by the interplay between innovation and regulation.As the industry matures, regulators around the world are increasingly focused on developing comprehensive regulatory frameworks for cryptocurrencies.These regulations aim to protect investors, prevent illicit activities, and promote greater market stability.
While some in the crypto community may resist regulation, it is ultimately necessary for the long-term growth and sustainability of the market.Clear and consistent regulations can attract institutional investors, foster greater adoption, and create a more level playing field for all participants.
Addressing Common Questions
Here are some common questions related to the topic of crypto inflows and the FTX collapse:
Q: What caused the FTX collapse?
A: The FTX collapse was primarily caused by mismanagement of funds and alleged fraudulent activities.Sam Bankman-Fried and other executives are accused of using customer funds for personal investments and to prop up Alameda Research, a related trading firm.
Q: How will FTX creditors be repaid?
A: FTX has proposed a plan to repay creditors with assets recovered from the exchange and its affiliates.The plan aims to compensate most creditors with approximately 119% of the value of their holdings at the time of bankruptcy filing.Repayments are expected to occur over several years.
Q: Is Bitcoin still a safe investment?
A: Bitcoin is still considered by many to be a relatively safer investment within the crypto space due to its established track record, limited supply, and network effect.However, it's important to remember that all cryptocurrency investments are inherently risky and subject to price volatility.
Q: What role does regulation play in the crypto market?
A: Regulation plays a crucial role in protecting investors, preventing illicit activities, and promoting greater market stability.Clear and consistent regulations can attract institutional investors and foster greater adoption of cryptocurrencies.
Conclusion: Navigating the Crypto Landscape After FTX
The crypto market experienced a tumultuous period following the FTX collapse, yet surprisingly saw the largest inflows into digital asset investment products in 14 weeks.This anomaly, fueled by institutional investors ""buying the dip,"" underscores the complex and often unpredictable nature of the crypto landscape.While the FTX saga continues to unfold with repayments to creditors offering a glimmer of hope, it serves as a critical reminder of the importance of due diligence, risk management, and responsible investing.
The future of crypto hinges on resilience, innovation, and the development of clear regulatory frameworks.By staying informed, diversifying portfolios, and exercising caution, investors can navigate the volatility and capitalize on the long-term potential of this evolving asset class.Whether you're a seasoned crypto enthusiast or a newcomer to the space, the key to success lies in understanding the risks and embracing a disciplined approach to investing.
Ultimately, the story of crypto in the wake of FTX is not one of demise, but of adaptation and potential resurgence.The inflows, while unexpected, signal a belief in the underlying technology and the possibility of a brighter future for digital assets.The market's reaction demonstrated an amount of resilience and maturity previously unseen.
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