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.
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.