According to a report by digital asset manager CoinShares, the crypto fund saw a net outflow of $134 million in the week to April 8, which is the second largest weekly outflow of the year.
Bitcoin bore the brunt of the outflow, which totaled $132 million during the seven-day period. Meanwhile, the Ethereum Fund saw total outflows of $15.3 million last week, bringing its year-on-year outflow to $126 million.
The crypto funds saw a net inflow of $180 million in the last week (March 26 to April 1).
Earlier, the global digital asset investment product saw a net outflow of $207 million for the week ended January 7, 2022.
Outflows were broad based on fund providers in both Europe (39%) and the US (61%). In addition, trading volume for investment products was lower, trading at $2.5 billion for the week, compared to an average of $2.9 billion for the year.
“We believe the price hike last week may have prompted investors to turn a profit last week,” CoinShares said in the report.
The price of Bitcoin, the world’s largest crypto asset, rose to $47,459 during the period March 26 to April 1. However, during the seven-day period ending April 8, the bitcoin price dropped to $42,316.
The crypto market has been depressed over the past few weeks due to potential US Federal Reserve interest rate hikes, rising inflation and the Ukraine-Russia war.
According to digital currency price and data platform CoinGecko, bitcoin was down 5.5% at $39,987.81 at 12.15 pm IST on Tuesday.
According to CoinShares, bitcoin’s latest volumes do not indicate any significant tension among investors, with investment products accounting for only 7.6% of total bitcoin volume, just above the 7% long-term average.
“However, the total volume of bitcoin is on average less than $2.3 billion per day versus $3 billion (on trusted exchanges),” CoinShares said.
During the week ending April 8, the multi-asset investment offering, which focuses on multiple altcoins, saw $5 million in net inflows. Solana-focused products also had a great week, bringing in $3.7 million. Cardano digital investment products invested $1 million in the same period.
In terms of individual crypto fund providers, Grayscale, the world’s largest digital asset manager, had a total AUM of $38.64 billion, followed by CoinShares with an AUM of $4.21 billion and 3iQ with an AUM of $2.35 billion. The total AUM of crypto fund providers for the week ended 8 April 2022 was $56.65.
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