Crypto funds see first week of inflows, ETH witnessed the biggest blow

abdelaziz Fathi

CoinShares’ survey of digital asset investment products showed the first week of inflows, totalling $14 million last week, which reverses a five-week long run of outflows.

The asset manager writes that the renewed inflows suggest the recent headwinds for digital assets, such as the significant price weakness, were seen as buying opportunities for investors. However, crypto investment products remain in red on a YTD basis.

Total assets under management (AuM) are now $51 billion, the lowest since early August 2021, which comes in line with the bearish trend in the broader cryptocurrency market. The figure is down by 41% from the $86 billion peak set back in November 2021. Bitcoin’s value has dropped by more than 50% over the same period.

Bitcoin saw inflows totalling $14 million last week, but the primary cryptocurrency suffered outflows of $317 million over the last five weeks, representing 1% of AuM.

Breaking down the latest statistics, Coinshares said outsized outflows were seen in Ethereum investment products. The second largest cryptocurrency in terms of market capitalisation witnessed the biggest blow, with an outflow of $16 million last week.

Ethereum’s market share has suffered in recent months due to Bitcoin’s dominance, and the recent combination of price drop and outflow has seen their AUM fall to $12.6 billion from a record $20 billion. As a result, Ethereum now represents 24% of the capital locked in crypto investment products.

“The current 7 week run of outflows now total $245 million, or 2% of AuM, highlighting much of the recent bearishness amongst investors has been focussed on Ethereum rather than Bitcoin,” CoinShares said in a note.

While the major cryptocurrencies suffered a blow, other altcoins such as Cardano, Polkadot and Solana softened the impact seeing in flows totaling $1.5 million, $1.5 million and $1.4 million respectively. However, London-based asset manager noted that the trend was diminishing following record weekly outflow in mid-January.

Digital asset investment products recorded a huge outflow of funds in the first month of the year as the broader cryptocurrency market performed poorly.

Cryptocurrency funds and products had amassed inflows of $9.3 billion in 2021, significantly greater than the $6.8 billion seen in 2020, or up 36 percent year-over-year.

Read this next

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

<