1 min read.Updated: 17 Aug 2021, 11:58 AM ISTLivemint
Investors took out a net of $22.1 million from cryptocurrency funds last week, even as bitcoin gained from a low of $42,924 to a high of $47,831
NEW DELHI: Bitcoin rally notwithstanding, digital assets investment products saw sixth straight week of outflows, thus bringing total redemptions to $115 million during the six-week period, the longest losing streak since January 2018, according to a report by digital asset manager CoinShares.
Investors took out a net of $22.1 million from cryptocurrency funds last week, even as bitcoin gained from a low of $42,924 to a high of $47,831. The funds based on the world’s biggest cryptocurrency saw the biggest outflows at $22 million, followed by $1.1 million outflows from ether.
Multi-asset investment products, a stalwart during this most recent negative sentiment, saw minor outflows totalling $0.3 million, the first time since June 2020, according to CoinShares report.
Cardano, which recently became the third biggest cryptocurrency, saw inflows of $1.3 million during the week.
Meanwhile, bitcoin was trading 3.3% lower at around $46,042 level, while ether was down 4% at $3,168, as per CoinGecko, a digital currency price and information data platform.
Commenting on the run of outflows, CoinShares said, “Despite the continued negative sentiment, it comes at a time of low investor participation likely due to seasonal effects as seen in other asset classes. Volumes are now at $3.1 billion per week in investment products compared to $7 billion per week in May, representing only 4% of total trading turnover compared to 7% in May."
As per the digital asset manager, sentiment looks to be recovering in the overall crypto market judging by recent price rises, which has pushed total investment product assets under management (AUM) to $55 billion, rising 10% week-on-week.
CoinShares, which is the world’s second-biggest digital-asset manager with an AUM of around $4.5 billion, saw outflows of around $16 million during the week. The world’s biggest digital asset manager, Grayscale, saw inflows of around $0.3 million.