Institutions can't hold on either? Digital asset management companies' market value halved, holdings shrank by $37 billion

Question

[Chain News] The recent correction has been pretty fierce. Those asset management companies holding large amounts of digital assets must be feeling the pain just looking at the numbers on their books.

How bad is it exactly? Publicly listed digital asset management firms saw their total market cap slashed from a peak of $176 billion in July to around $99 billion now. To make matters worse, the entire cryptocurrency market fell below $2.9 trillion last Friday—for the first time since May.

The value of coins held by these firms is also shrinking. Back on October 6, when Bitcoin peaked, their total holdings were worth $141 billion; by late November, that number had dropped to just $104 billion, evaporating $37 billion.

Why is the market so weak? On one hand, funds are flowing out of ETFs. On the other, the global economic outlook remains uncertain, so everyone is waiting and watching. Institutions are made up of people too—when the market looks like this, paper losses are inevitable.

AirdropCollector · Accepted Answer

$37 billion just evaporated like that, even institutions have to accept the loss—this market move is really fierce.

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A 50% drop is one thing, but the problem is no one knows where the bottom is...

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ETF capital is fleeing, the global economy is a mess, regular retail investors should have left already, and institutions are still holding on?

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From $141 billion down to $104 billion, to put it bluntly, everyone’s just gambling.

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I just want to know, after this crash, will institutions still try to buy the dip?

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No one can escape paper losses, but institutions really do have stronger risk tolerance than us—that’s the real difference.

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Breaking below $2.9 trillion, I feel like we haven’t seen a bottom signal yet...

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If institutions can’t hold, retail investors definitely can’t hold—honestly, this market is just a giant sieve.

GovernancePretender · Answer

Institutions have to go through this too, which shows that this crash is really severe. 37 billion evaporated—it hurts just to look at it.

MEV_Whisperer · Answer

Even institutions have to cut their losses; this is the reality. No one can escape the harshness of the market.

BearMarketMonk · Answer

Institutions have to kneel too, this wave really has no negotiation. 37 billion evaporated directly, it hurts to watch.

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50% Slump? Ha, this is just the beginning, keep waiting.

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I said it, no one can escape a Bear Market. Institutions are just retail investors with bigger accounts.

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The 29 trillion breaking point is a definite short positions signal. Who is still thinking about buy the dip?

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From 1760 to 990, now you know what impermanence means, haha.

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ETFs running out is the worst, it shows the institutions&#39; mentality has collapsed.

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Everyone is waiting? Then let it continue to fall, no one is catching a falling knife.

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Evaporating 37 billion, what do you want, to cover shareholders&#39; returns? Dream on.

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This is what I often say, holding coins is not as good as holding grain. I&#39;ve seen through it.

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In May, for the first time it broke 29 trillion, will it break 300 billion next time? Can&#39;t even imagine.

MidnightMEVeater · Answer

Good morning, the arbitrage at two in the morning is still awake, 37 billion evaporated just like that? Institutions have to eat sandwiches too.

DegenDreamer · Answer

Haha, even the institutions can't hold on anymore. Now us retail investors are finally not the worst off.