Global crypto funds that invest in bitcoin saw the largest weekly outflows since June 2021 at $133 million, in part driven by the hawkish rhetoric from the US Federal Reserve and the recent price decline.
Overall, digital asset investment products or crypto funds saw net outflows totalling $120 million last week (23-29 April), bringing total outflows in this four-week run to $339 million, digital asset manager CoinShares said.
“This doesn’t reflect the same bearishness seen at the beginning of this year, although it is close to the $467 million outflows witnessed. Regionally, the outflows were fairly evenly split between the Americas, comprising 41% and Europe 59%,” CoinShares said in a report.
Ethereum-based funds saw outflows totalling $25 million last week. Out of the 17 weeks this year, only five have seen outflows, bringing year-to-date outflows to $194 million.
Bitcoin, which is at around $38,000 level and ethereum near $2,800 level are currently trading more than 40% lower compared to their respective all-time highs. The crypto market has been impacted by the Russia-Ukraine crisis, rising inflation and fears of Fed rate hikes.
Meanwhile, the CoinShares report showed that most large altcoins saw minor outflows last week with minor inflows into Terra and Fantom totalling $0.39 million and $0.25 million, respectively. Altcoins is a cumulative term to define cryptocurrencies that came after bitcoin.
Further, FTX Token, the utility token for the FTX crypto exchange, bucked the negative trend with inflows totalling $38 million last week, the largest of all crypto assets that the digital asset manager tracks.
In terms of individual crypto fund providers, the world’s biggest digital asset manager, Grayscale had total assets under management of $34.15 billion, followed by CoinShares at $3.68 billion and 3iQ with an AUM of $2.02 billion. The total AUM of crypto fund providers was at $50.43 for the week ended 29 April 2022.