Investors in general have slowed down the withdrawal of capital from cryptocurrency funds over the past week, however, outflows are now observed not only in products based on bitcoin, but also based on altcoins, CoinShares said in a new report.
In total, crypto funds lost $ 21 million in seven days, while a week earlier the outflow was $ 94 million. According to analysts, this change may serve as an early sign of passing the peak of bearish expectations of investors. For several weeks, they have been withdrawing capital from bitcoin funds along with a decline in the market. Ethereum and XRP-based funds, on the contrary, recorded inflows of funds as cryptocurrency portfolios diversified. This trend also began to change.
“Ether recorded the largest churn of all data collection last week, for a total of $ 12.7 million,” CoinShares wrote.
Since the beginning of the year, the inflow of funds to such funds amounted to $ 994 million, and the total amount of capital in them reached $ 11.1 billion. This month, they consistently outperformed bitcoin funds.
Outflows from bitcoin at the same time amounted to only $ 10 million. Last week, the figure reached a record $ 141 million. Trading activity in bitcoin funds increased by 43%. XRP funds lost $ 2.8 million after raising $ 21 million in six weeks. In general, the observed dynamics indicate a lack of consensus among investors regarding the future direction of the market after rising bearish expectations over the past month, analysts add.
“Although sentiment has dropped over the past month, investors generally remain committed to cryptocurrencies with the inflows that have been recorded this year,” wrote CoinShares, noting that crypto funds have raised $ 5.8 billion since early 2021. 2020 was $ 6.7 billion.
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