Crypto Funds See Inflows, Despite Slower Overall Volumes

Solana, which suffered a network outage that lasted nearly 20 hours last week, saw inflows of $4.8 million.

AccessTimeIconSep 20, 2021 at 5:42 p.m. UTC
Updated Sep 20, 2021 at 6:51 p.m. UTC

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Digital asset investment products saw inflows totaling $42 million last week, signaling another week of improved sentiment among investors. This marks the fifth consecutive week of inflows.

“This improved sentiment could be a seasonal phenomenon, but we are not seeing a commensurate rise in volumes in investment products,” said a CoinShares report published Monday. “This suggests that some investors are taking advantage of recent price weaknesses and the continued rise in alt-coin popularity,” added the report.

Solana, which suffered a network outage that lasted nearly 20 hours last week, saw inflows of $4.8 million. Ethereum and multi-asset investment products saw inflows of $6.6 million and $3.7 million, respectively.

“This suggests investors were happy to shrug off the attack, seeing it as teething problems rather than something more inherent with the network,” said the report.

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Despite inflows of $15 million over the last week, the world’s largest cryptocurrency has suffered the most from negative investor sentiment, with inflows in only three of the last 16 weeks.

Over the course of this year, bitcoin’s total market share of assets under management (AUM) has fallen from 81% in January to 67% on Monday.

Bitcoin is down 8% on the day, and is decisively below its 50-day moving average. At press time, bitcoin was trading at $43,784.

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Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

CoinDesk - Unknown

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.