Digital-asset investment funds suffered outflows for a second straight week, a sign profit taking is offsetting fresh money amid the crypto sell-off.
Investors pulled a net $97 million from cryptocurrency-related investment funds during the week ending May 21, or 0.2% of total assets under management, according to a Monday report by CoinShares.
- Outflows “represent a net change in sentiment following increasing regulatory scrutiny and concerns over bitcoin’s environmental credentials,” according to CoinShares.
- “Last week saw lower outflows for bitcoin with outflows of $111 million versus $115 million the previous week.”
- Investors continued to diversify into altcoin investment products last week totaling $27 million in inflows, led by cardano.
- The rotation into altcoins could “represent investors actively choosing proof-of-stake coins based on environmental considerations.”
- On May 12, Tesla announced that it was suspending bitcoin payments over environmental concerns, accelerating a move down in bitcoin prices. The cryptocurrency is down about 34% month to date.
- Ethereum products saw minor outflows of $12.6 million last week following a long run of record-breaking inflows.