Defying the bear market, Bitcoin funds saw $46M inflows in June
Crypto investment products registered outflows for yet another week, the bulk of which came from Canadian exchanges, according to data from digital asset manager CoinShares.
The report highlights investors’ cautious sentiment on the cryptocurrency sector as the broader market’s free fall continues, it says.
Crypto outflows hit $39 million in the week ended June 20, with total assets under management (AuM) now at their lowest point since February 2021, at $36 billion, down 59% from the November 2021 peak.
Despite the overall negative sentiment, Bitcoin saw inflows totaling $28 million last week and looks to be benefitting from weak prices with month-to-date inflows at $46 million.
Short-Bitcoin AuM also peaked to an all-time-high of $64 million at the beginning of last week but saw record outflows at $5.8 million suggesting that “negative sentiment may be close to its peak.”
Breaking down the latest statistics, Coinshares said the aggregate data masks a significant regional polarization of views. In particular, last weeks’ outflows came almost solely from Canadian exchanges ($141 million), while the US, Europe and Brazil exchanges saw inflows of $79 million, $12 million and $12 million respectively.
Multi-asset investment products, the most resilient in terms of inflows this year, saw inflows totaling $9 million last week.
Ether, the token used in the Ethereum blockchain, also saw outflows of nearly $70 million last week, its 11 straight weeks of outflows. The figure was much higher than the previous week which saw outflows of $41 million, data showed.
Year-to-date investment into ether products still shows outflows at $459 million, representing 6 percent of assets under management (AUM). As a result, Ethereum now represents less than 21 percent of the capital locked in crypto investment products.
Elsewhere, Solana looks to be benefitting from investors’ worries over The Merge (ETH2), with inflows of $0.7 million last week and $109 million year-to-date.
CoinShares is Europe’s largest digital asset investment firm. The company reported its first quarter revenue at £27.96 million, down from Q1 2021’s £39.91 million. Adjusted EBITDA also halved to £18.7 million from £34.2 million in the three months through March 2021.
As the market environment has changed in the past three months, with cryptocurrencies under pressure, the institutional-favorite platform has experienced difficulties gaining confidence from investors. Though vowing to focus on “long-term growth,” as indicated in the report, the asset manager’s total comprehensive income for Q1 was £20.2 million, down from £32.1 million a year earlier.