Crypto Funds Suffer 6th Week of Outflows Despite Bitcoin Rally
The outflow was partly because of low investor participation due to seasonal effects, also seen in other asset classes.
Investors redeemed a net $22.1 million from cryptocurrency funds last week, the sixth consecutive week of outflows, even as bitcoin and many other digital assets rallied, a new report shows.
It's the longest streak of outflows since January 2018, according to the report Monday by the digital-asset manager CoinShares.
Investors have seen an outflow of $22 million from bitcoin, despite that the largest cryptocurrency has recently traded up to $48,200 from a low of $29,608 last month. Bitcoin was changing hands at $46,074 as of press time, little changed over the past 24 hours.
CoinShares noted that the fund outflows come "at a time of low investor participation likely due to seasonal effects as seen in other asset classes." Trading volumes in the investment products are running at $3.1 billion per week, down from $7 billion in May.
Total assets under management in the digital-asset investment products rose 10% week-to-week to $55 billion, mostly because of price appreciation.
Last week, investment products focused on ethereum netted outflows of $1.1 million, while funds related to Binance coin saw $900,000 of outflows and investors redeemed $300,000 from multi-asset funds.
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