Due to the huge price drops in the cryptocurrency market last week, we also see that institutional investors are increasingly avoiding more risky investment products.
While bitcoin (BTC) funds saw decent net inflows last week, most altcoins don’t. Ethereum (ETH) products in particular saw another large net outflow, according to the new CoinShares report.
[1/4]This week’s Digital Asset Fund Flows Report is now available! write by @jbutterfill, the headline for this week is: Record outflows from Short-Bitcoin suggest investors close to peak bearishness. Read on for the highlights -> pic.twitter.com/ovHMmhex2g
— CoinShares 👩🚀 (@CoinSharesCo) June 20, 2022
Crypto funds to lowest level since Feb 2021
Crypto funds hit a total net outflow of $38.6 million last week. As a result, the total assets under management (AUM), or assets under management, in crypto investment products to $36.3 billion. That is the lowest since February 2021 and a drop of 59% from November 2021.
Bitcoin funds see net inflow…
Bitcoin nevertheless saw a net inflow of $28.2 million last week. This inflow now stands at $46.3 million this month and even $480 million this year. In contrast, bitcoin short funds (products that are aimed at a price decline) have an outflow of $5.8 million. According to CoinShares, this may suggest that negative sentiment has peaked.
…but also largest outflow ever in a day
However, bitcoin funds saw the largest single-day outflow on Friday, reaching a staggering $493 million. As stated in the bitcoin market update this morning, this was related to a huge outflow of more than 50% from Canadian bitcoin. exchange traded fund (ETF) from Purpose.
— James Butterfill (@jbutterfill) June 21, 2022
However, CoinShares is unclear how this huge outflow was compensated to arrive at a positive total for bitcoin. Perhaps this Purpose outflow was not yet included in the weekly report.
Ethereum funds have seen outflows for 11 weeks
Altcoins were not to the liking of institutional investors last week. Ethereum products in particular saw a huge outflow. A whopping $69.9 million poured out of ether funds last week. It is already the eleventh week in a row that ether products have experienced a net outflow and already $458.6 million has flown out this year.
Investors choose solana over other altcoins
Tron (TRX) saw net outflows of $0.9 million last week, polkadot (DOT) of $0.3 million and cardano (ADA) of $0.4 million. Solana, on the other hand, saw an inflow of $0.7 million last week and now $109.4 million this year.
The reason investors choose solana over ethereum may have to do with investors looking to reduce and diversify their risk. So-called multi asset products saw net inflows of $8.9 million last week and $206.7 million this year.