Crypto Funds Suffer 2nd Straight Week of Outflows; Investors Rotate Toward Altcoins

Investors exited digital asset funds amid the crypto sell-off, and have diversified into altcoin products.

AccessTimeIconMay 24, 2021 at 5:49 p.m. UTC
Updated Sep 14, 2021 at 1:00 p.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

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.
CoinDesk - Unknown

CoinDesk - Unknown

Chart shows net new assets and slowing assets under management across digital investment products.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.