Global crypto funds investing in bitcoin saw the biggest weekly outflow since June 2021 at $133 million, driven by flamboyant rhetoric from the US Federal Reserve and the recent price crash.
Overall, digital asset investment products or crypto funds saw a total of $120 million in net outflows in the past week (April 23-29), bringing the total outflows over this four weeks to $339 million, said digital asset manager CoinShares.
“This does not reflect the same slowdown seen earlier this year, although it is closer to outflows of $467 million. Regionally, outflows were split evenly between the US, with 41% and Europe 59 per cent.” % were involved,” CoinShares said in a report.
Ethereum-based funds saw total outflows of $25 million last week. Only five of the 17 weeks this year have seen outflows, bringing year-over-year outflows to $194 million.
Bitcoin, which is near the $38,000 level and Ethereum near the $2,800 level, is currently trading more than 40% lower than its all-time high. The crypto market has been hit by the Russia-Ukraine crisis, rising inflation and fears of a Fed rate hike.
Meanwhile, a CoinShares report showed that most major altcoins saw minor outflows last week, with Terra and Phantom receiving modest inflows of $0.39 million and $0.25 million, respectively. Altcoins is a cumulative term to define the cryptocurrency that comes after bitcoin.
Furthermore, FTX Token, the utility token for the FTX crypto exchange, bucked the downside trend last week with a total inflow of $38 million, which is the largest among all crypto assets tracked by Digital Asset Manager.
In terms of individual crypto fund providers, Grayscale, the world’s largest digital asset manager, had total assets under management of $34.15 billion, followed by CoinShares with an AUM of $3.68 billion and 3iQ with an AUM of $2.02 billion. The total AUM of crypto fund providers for the week ended 29 April 2022 was $50.43.