Ethereum and XRP Looking More Attractive as Investors Rush to Exit Bitcoin Funds
Investors redeemed a net $141 million during the seven days through June 4, the highest weekly total on record, according to CoinShares.
Jun 7, 2021 at 6:21 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/B5AEDDRQJZCELPJ3YILUXGUJCQ.png)
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
Bitcoin-focused investment funds suffered record redemptions by investors last week after May's price drop soured sentiment on the largest cryptocurrency by market value.
Investors redeemed a net $141 million from bitcoin funds during the seven days through June 4, the highest weekly total on record, according to the report from CoinShares, a digital-asset manager. The amount represents about 8.3% of net inflows recorded earlier in the year.
In May, most digital asset funds experienced net outflows when the bitcoin price suffered a near 30% correction.
Investor sentiment has remained broadly negative, although there could be signs the worst is over as investors diversify within the crypto space, according to the CoinShares report.
- Investors plowed $33 million into funds focused on ether, the native cryptocurrency of the Ethereum blockchain.
- Inflows to XRP funds totaled $7 million, the largest amount since April.
- Cardano and multi-asset products saw inflows of $4.5 million and $2.7 million respectively, according to CoinShares.
Overall, digital asset funds suffered net outflows totaling $94 million during the week.
:format(webp)/downloads.coindesk.com/arc/failsafe/user/1x1.png)