Investors continue to withdraw assets from crypto funds – CoinShares
Date: 2023-09-12 Author: Karina Ziganova Categories: BLOCKCHAIN, BUSINESS
Outflows from crypto investment products totaled $59 million last week, according to a CoinShares report.
The crypto industry has recorded an outflow of assets for the fourth week in a row. Total year-to-date net outflows amounted to $294 million, or 0.9% of total assets under management (AuM).
“Inflows were also seen in shorted investment products, indicating that sentiment for this asset class remains negative,” the report noted.
Analysts believe the performance is due to ongoing concerns about regulation of the asset class, as well as the recent strength of the dollar. Trading volumes on the crypto market, meanwhile, fell 73% compared to the previous week and amounted to just $754 million.
Investors Withdrew Almost $70 Million from Bitcoin Products
Among the cryptocurrencies, Bitcoin (BTC) suffered the most. Last week, outflows totaled $69 million, while shorted BTC products saw their biggest weekly inflows since March 2023 at $15 million.
The outflow of capital from Ethereum (ETH) products amounted to $4.8 million. Thus, since the beginning of the year, investors have withdrawn $108 million - 1.6% of AuM. Ripple remained the most popular altcoin, with inflows into XRP-focused financial products exceeding $0.7 million.
“Blockchain stocks did not escape the negative sentiment, with capital outflows totaling $10.8 million, marking the fifth consecutive week of capital outflows,” the analysts concluded.
Hopes for launching a spot Bitcoin ETF have faded
A week earlier, the inflow of capital into investment products based on digital assets slowed down, but the outflow amounted to only $11.2 million.
Investors had high hopes for the approval of spot ETFs in the US early last week, analysts said. However, they faded with news of a delay in the SEC's decision: on September 1, the regulator announced that it needed a “longer period” to evaluate applications from BlackRock, Wisdom Tree Funds, Invesco, Valkyrie Funds, Fidelity and VanEck.
