Despite a recent recovery in crypto prices, digital asset investment products last week saw outflows of US$26 million, according to CoinShares, Europe’s largest digital asset fund manager. It was the fifth consecutive week in which institutional money flowed out of cryptocurrencies, mainly Bitcoin.
Fast facts
- Bitcoin — the largest cryptocurrency by market value — bore the brunt of the sell-off, CoinShares reported, with outflows of US$33 million. Nonetheless, year-to-date inflows remain high, at US$4.2 billion. Bitcoin has been on a two-week upward trend, and today crossed US$46,000 for the first time since May 17, according to CoinGecko data.
- Ethereum, the second-largest cryptocurrency by market value, saw small inflows of US$2.8 million. Ethereum’s market share has risen rapidly and now accounts for 26% of investment products, compared to 11% at the beginning of 2021, according to CoinShares. Just last week, Ethereum successfully completed it s major “London” upgrade to bring more predictable transaction (“gas”) fees to Ethereum and reduce Ether’s supply, with a portion of Ether that previously went to miners now to be “burned” or destroyed. Some analysts have said that this could lead to an increase in Ether’s price.
- Altcoins XRP, Cardano and Polkadot also saw minor inflows of US$1.1 million, US$0.8 million and US$0.4 million, respectively. Multi-asset investment products reported inflows of US$0.8 million.
- With recent price increases, total investment product assets under management reached US$50 billion, the highest level since mid-May, CoinShares reported.
Source: forkast