Crypto Funds See Largest Outflows Since January
Crypto funds last week suffered their largest outflow since January as investors withdrew money from bitcoin and Ethereum funds, CoinShares reported on April 11.
The $134 million in outflows marked the second worst week in the year for funds that manage digital asset investments, and represented a sharp turn after two straight weeks of heavy inflows.
Bitcoin-related products took the lion’s share of the outflows with $131.8 million of redemptions. Short bitcoin investment products, which bet on making profits when bitcoin’s price declines, saw inflows totaling $2 million, their largest inflow on record.
The reversal came after the price of bitcoin (BTC), the largest cryptocurrency by market capitalization, rose to $48,000 from $38,000 in only two weeks by early April.
“We believe price appreciation the previous week may have prompted investors to take profits,” the report added. Lower daily trading volumes ($2.3 billion) than the average also suggest that there isn’t significant stress among investors.
Funds focused on Ethereum (
Meanwhile, altcoin (excluding Ethereum) and multiple-asset funds stayed resilient and recorded inflows of $6 million and $5 million, respectively.
Breaking down the funds by assets, solana (SOL) led the way with $3.7 million in inflows, down from $8.2 million the week before, bringing its year-to-date inflows to $107 million.
Funds focused on cardano (
Outflows were broad among providers as both European and America-based funds booked outflows, with American providers representing 61% of the outflows.
Funds managed by ProShares and
Investment products that manage blockchain-related stocks in their portfolio remained strong and totalled $32 million in inflows.