$ 98 million withdrew from bitcoin-based funds in a week

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Investors have pulled about $ 50 million from cryptocurrency-based funds over the past week, according to a new report from CoinShares. This was the first net outflow of funds since the beginning of this year. At the same time, funds based on bitcoin left a record $ 98 million. Products using other digital assets continued to attract investments.

The churn over the past week is only a small fraction of the $ 5.6 billion received by cryptocurrency funds this year. However, it demonstrates how quickly investors can change the direction of cash flows during a decline in the price of bitcoin, which was 35% from the April highs.

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“Investors are diversifying their positions by withdrawing assets from bitcoin and converting them to altcoins,” CoinShares said.

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Ethereum (ETH) investment products continued to grow and raised $ 27 million. May also marked the first month that trading volumes in such products surpassed Bitcoin. Their turnover amounted to $ 4.1 billion against $ 3.1 billion from bitcoin.

 

“We also saw inflows into other digital assets, the most popular of which were Cardano (ADA) and Polkadot (DOT) with $ 6 million and $ 3.3 million, respectively,” the analysts added.

 

Defi Technologies, meanwhile, announced preparations to launch two exchange-traded investment products based on ADA and DOT. The former will be listed on the Nordic Growth Market (NGM) stock exchange today, and the latter by the end of the month. They will allow institutional investors to invest in relevant cryptocurrencies without having to hold them.

 

“Following the success of our Bitcoin and Ethereum-based ETPs, we are seeing an increase in investor demand for other digital assets,” the company said. “With the development and increasing understanding of these technologies, we are delighted to provide investors with the most cost effective and secure way to access innovative protocols such as Cardano and Polkadot.”

 

Differences in the investment preferences of market participants are observed against the background of the divergence in the price dynamics of the largest cryptoassets. Bitcoin has dropped 25% over the past 30 days, while ETH and ADA have risen 48% and 52%, respectively, and set new highs.

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