The inflow of money into crypto funds was interrupted — CoinShares
Date: 2023-07-25 Author: Karina Ziganova Categories: CRYPTO PAYMENTS
Over the past week, capital inflows into some cryptocurrency products have declined sharply. This is stated in the report of CoinShares.
"Digital asset investment products showed marginal outflows totaling $6.5 million after the previous four weeks of inflows totaling $742 million," the report said.
Over the past seven days, investment products for digital assets recorded an outflow of $6.5 million, while a week earlier they raised about $137 million. Trading volumes were also below the weekly average for the year and amounted to $1.2 billion, compared to $2.4 billion a week earlier.
"Minor negative sentiment was primarily associated with the North American market, which accounted for 99% of outflows ($21 million). This was offset by an inflow of $12 million to Switzerland and $1.9 million to Germany," CoinShares analysts said.
What's going on with cryptocurrency
At the beginning of July, the inflow of money through the main investment instruments in bitcoin (BTC) exceeded $200 million, which was the result of a massive application for the opening of a spot bitcoin ETF in June.
However, last week, Ethereum funds outperformed BTC funds. The second-largest cryptocurrency by market capitalization recorded an inflow of funds of $6.6. Bitcoin, on the other hand, had an outflow of $13 million.
Ripple (XRP) products received an inflow of $2.6 million after resolving a lawsuit with the U.S. Securities and Exchange Commission. Solana (SOL) and Polygon (MATIS) also received negligible capital inflows.
Annual maximum investment
That being said, just four weeks ago – from July 19 to July 25 – investment crypto products recorded the largest weekly inflow since July 2022. Then BTC was in the lead with a capital inflow of $187 million, while only $7.8 million was attracted to ETH-based products, that is, 0.1% of all assets under management.
Total assets under management in crypto investment products also reached an annual high, surpassing $37 billion and offsetting losses since the bankruptcy of hedge fund Three Arrows Capital.
