The TerraUSD Collapse Triggered the Purchase of Crypto Products, With an Inflow of $274 Million

In the past week, digital asset investment products had the largest capital inflow so far this year, reaching US $274 million.

According to the latest coinshares report, the recent collapse of TerraUSD (UST) stablecoin and its related widespread selling may be regarded by investors as an important purchase opportunity.

In the past week, North American investors led capital inflows, totalling $312 million. At the same time, in Europe., investor sentiment was quite polarized, but the final outflow of funds prevailed, reaching $38 million. Last week’s small capital inflows have been rid of four consecutive weeks of capital outflows, despite the overall depressed sentiment in the cryptocurrency market.

Coin Flow

Bitcoin based investment products, in the past week, most of the capital inflows reached US $299 million. The report emphasizes that since bitcoin is the largest digital asset, investors may choose its relative security. In addition, although short-term bitcoin still has capital inflows, it is only $700000, significantly slower than in previous weeks.

Ethereum based products continued their negative streak, with a total outflow of $27 million last week. This year’s steady trickle of outflows has brought the total so far this year to $236 million, which accounts for 2.6% of the total assets under management. Among other altcoins, Solana is the only one that has experienced a significant outflow of US $5.3 million, while the inflow of others including Tron, Cardano, litecoin and ripple is negligible, which are US $300000, US $300000, US $200000 and US $200000 respectively.

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Assets Under Management Were Hit

Most importantly, with its collapse, TerraUSD based products also saw almost complete evaporation of assets under management, with a loss of 99%. However, the report notes that “some fearless investors” still added $43000 to their positions. This also caused panic among investors of blockchain stock products, resulting in the third largest outflow record of US $51 million. On the other hand, this recent price weakness has stimulated other investors to adopt a more diversified approach, with a total inflow of $8.6 million from multi asset investment products.