Crypto funds saw a $4 million net capital outflow for the week ended July 9, reversing the prior week's net capital inflow of $63 million. Trading volume in bitcoin, the largest cryptocurrency by market value, dropped to $1.58 billion, the lowest since October 2020.
For recent weeks, North American funds dedicated to bitcoin have seen constant capital inflows while their European counterparts kept seeing outflows, which indicates “a geographic divergence in sentiment at present,” according to CoinShares.
Since the start of the year, multi-asset investment funds have seen a $362 million net capital inflow in total, representing 16.5% of assets under management of such funds. Crypto funds dedicated to bitcoin have witnessed $4.184 billion of net inflows, representing 15.6% of assets under management, while ether has attracted $961 million, or 9.9%.
“While the inflows [in multi-asset investment funds] remain relatively small in comparison to bitcoin and ethererum, the data does imply that investors are increasingly looking to diversify their digital asset holdings,” wrote CoinShares.
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.