After seven consecutive weeks of inflows, crypto investment products Recorded significant outflows last week, according to the latest report from institutional crypto fund manager CoinShares.
The report analyzing weekly flows into cryptocurrency funds suggests that regulatory concerns and geopolitical turmoil have dampened investor interest in both the Americas and Europe.
$80 million of North American-derived outflows
As of early last week, $80 million of North American-derived outflows could be interpreted as a answer to the US Presidential Executive Order to analyze the cryptocurrency sector, according to the report.
“Given that there has been little price response and $30 million outflows were also seen in Europe, the underlying motives are unclear,” the institutional crypto fund manager noted, adding that both regulatory concerns and geopolitical unrest played a role. role in the corrosion of interest in crypto assets in the week ending March 11.
Chart showing weekly flows of crypto assets (CoinShares)
Bitcoin saw $70 million in outflows last week, “due to low volumes,” the report noted.
According to CoinShares:
“Investment products traded $1 billion last week compared to the average of $1.24 billion, representing just 5% of total Bitcoin transaction volume.”
Multi-asset investment products remain popular
In relative terms, Ethereum investment products saw the largest outflows last week, totaling $51 million.
Year-to-date Ethereum outflow volumes represent 1.2% of assets under management (AuM), the report noted.
Meanwhile, altcoin investment product flows were mixed last week.
Table showing weekly digital asset fund flows by asset (CoinShares)
Zooming into individual asset pools revealed that Solana, XRP, and Polkadot posted minor outflows, totaling $0.3 million, $0.7 million, and $0.9 million, respectively.
At the same time, Cardano and Litecoin investment products saw inflows of less than $0.2 million.
That said, multi-asset investment products saw inflows totaling $12 million, while blockchain equity investment products attracted $4.1 million.
According to CoinShares, blockchain and multi-asset stock investment products remain “the most popular among investors”, with inflow volumes accounting for 3.2% and 6.7% of assets under management. , respectively.
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This post Regulatory concerns are taking their toll: Bitcoin and Ethereum hedge funds record $120 million in outflows
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