Crypto Funds See Largest Weekly Outflows Since January
According to CoinShares, crypto funds experienced their highest outflow since January last week, as investors withdrew money from bitcoin and Ethereum funds.
The funds had $134 million in net outflows, the second-worst week of the year for funds that handle digital asset investments and a significant reversal following two weeks of strong inflows.
With $131.8 million in redemptions, Bitcoin-related products grabbed the lion’s share of the withdrawals. Inflows into short bitcoin investment instruments, which bet on profiting when bitcoin’s price falls, totaled $2 million, the highest on record.
By early April, the price of bitcoin (BTC), the most valuable cryptocurrency by market capitalization, had risen to $48,000 from $38,000 in just two weeks.
“We suspect the prior week’s price appreciation may have motivated investors to take profits,” the report stated. Lower daily trade volumes ($2.3 billion) than the usual also indicate that investors aren’t very concerned.
Outflows from Ethereum (ETH) funds were $15.3 million, bringing the year’s total outflows to $126 million.
In the meantime, altcoins (excluding Ethereum) and multi-asset funds remained resilient, with $6 million and $5 million in inflows, respectively.
Solana (SOL) led the way in terms of inflows with $3.7 million, down from $8.2 million the week before, bringing its year-to-date inflows to $107 million.
Cardano (ADA) funds received $1 million in inflows, while litecoin (LTC) funds received $600,000.
Outflows were widespread across providers, with both European and American funds reporting outflows, with American funds accounting for 61% of all outflows.
Outflows of $64.5 million and $45.8 million were recorded in funds managed by ProShares and ETC Group, respectively.
Inflows of $32 million were seen in investment products that manage blockchain-related stocks in their portfolio.