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Crypto investors continued to jump ship as global funds witnessed net outflows totalling $423 million in the week ended 24 June, the largest on record, according to a report by digital asset manager CoinShares.

The earlier record for outflows stood at $198 million earlier this year in January.

The latest outflows were solely focussed on bitcoin, which saw net selling for the week totalling $453 million, erasing almost all inflows year-to-date and leaving total bitcoin assets under management (AUM) at $24.5 billion, the lowest point since the beginning of 2021.

As per the report, the outflows occurred on 17 June but were reflected in the last week’s figures due to trade reporting lags, and were likely responsible for bitcoin’s decline to $17,760 level, an 18-month low, that weekend.

Crypto prices have plummeted amid bearishness following the US Federal Reserve’s reversal of pandemic-era stimulus measures. Bitcoin is currently trading at around $21,000, which is about 70% lower against its all-time high of $69,044.77, hit last November.

Notably, short-bitcoin (a bet that the price will continue to fall) saw net inflows $15 million due to the launch of the first US-based short investment product last week, while older short-investment products saw outflows.

Launched last week, ProShares Short Bitcoin Strategy ETF, provides a way for investors to potentially profit from a decline in the price of bitcoin or hedge their cryptocurrency exposure with an exchange-traded fund (ETF).

Meanwhile, ethereum saw net inflows totalling $11 million, the first for the crypto asset following 11 consecutive weeks of outflows. Multi-asset crypto funds also saw minor inflows.

According to the report, the latest outflows were not the largest relative to the total assets under management (AUM) of crypto funds.

“This record occurred during the bear market in February 2018 where outflows representing 1.6% of the AUM were witnessed, while the outflows last week were the third largest on record, representing 1.2% of AUM," said CoinShares.

The overall AUM of global digital asset investment products or crypto funds had hit an all-time high of around $75 billion in October last year. The latest figure stands at $36.18 billion.

In terms of crypto fund providers, the world’s biggest digital asset manager, Grayscale, remained steady with total assets under management (AUM) of $27.02 billion, followed by CoinShares at $1.61 billion and 21Shares with an AUM of $922 million.

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