$102 Million Withdrawn From Digital Asset Funds Amid Crypto Crash

Global digital asset fund outflows totaled $102 million last week as bears continued to dominate the cryptocurrency market, according to a Coin Shares report.

Bitcoin last week’s outflows were $57 million, bringing month-to-date outflows to $91 million. Ethereal it also saw outflows totaling $41 million last week.

Ethereum is the most affected asset, with outflows of nearly $386.5 million so far this year. However, Bitcoin remains strong, with annual inflows of nearly $450.8 million.

Last week marked the first week of digital asset fund outflows, following back-to-back weeks of inflows in which institutions “bought the dip.”

A digital asset fund is an investment vehicle structured to provide exposure to digital assets for traditional investors, without requiring them to own the assets in question.

Funds shift as rate hike looms

CoinShares attributed the flow of funds to “increasingly aggressive rhetoric” coming from the US Federal Reserve; earlier this week, the Wall Street Journal reported that the Fed is ready to consider a rate hike imminent to control rising rates of inflation.

The United States accounted for the majority of fund outflows last week, with $98 million versus $2 million from Europe, indicating growing instability in the US market.

Multi-asset funds also faced outflows of $4.7 million last week, bringing total month-to-date outflows to $3.6 million.

3iQ (-72.1 million) and Purpose (-43.4 million) reported negative outflows last week. ProShares (24.2 million), grayscale (0.3 million) and 21Shares (4.5 million) ended on the positive side last week.

Total assets under management (AUM) have fallen to $1.9 billion, a 54% drop from its peak in November 2021.

Major cryptocurrencies have continued to fall in recent days. Bitcoin is down 2.2% in the last day and is trading around $22,400. Ethereum is trading at around $1,210, up around 1.6% over the last 24 hours, according to data from CoinMarketCap.

Do you want to be a crypto expert? Get the best of Decrypt straight to your inbox.

Get the biggest crypto news stories + weekly recaps and more!

Add Comment