Digital asset investment products or crypto funds saw a net inflow of $40 million last week (April 30 to May 6), even as digital asset prices declined amid risk-off sentiment in broader financial markets, said digital asset manager CoinShares. he said.
However, the influx was one-sided with bitcoin-based funds, the primary digital asset where investors expressed more positive sentiment, seeing a total net inflow of $45 million.
According to CoinShares, investors were taking advantage of the sharp weakness in prices to increase positions.
Bitcoin is currently down more than 50% from its all-time high of $69,044.77, which it hit in November last year, and is trading at a one-year low near the $32,000 level.
“Interestingly, we haven’t seen the same increase in investment product trading activity as we typically see historically during periods of extreme price weakness, and it’s too early to tell whether this will reverse the four-week end of negative sentiment.” symbol,” he said. Coinshare.
Meanwhile, inflows were one-way, with net inflows of $66 million into North American investment products, while Europe saw total net outflows of $26 million.
Per the report, negative Ethereum sentiment continued last week with a total of $12.5 million inflows taking the total outflow to $207 million, representing 0.8% (AUM) of assets under management (AUM).
Notably, Solana was the only altcoin, a cumulative term to define a cryptocurrency that comes after bitcoin, to see any measurable inflows, which totaled $1.9 million last week.
Furthermore, a record amount, $4 million, flowed into short bitcoin contracts over the past week (a condition that the price would continue to drop).
In terms of individual crypto fund providers, Grayscale, the world’s largest digital asset manager, had a total AUM of $32.28 billion, followed by CoinShares at $3.4 billion and 3iQ with an AUM of $1.91 billion. The total AUM of crypto fund providers for the week ended 6 May 2022 was $47.54.