Cryptocurrency funds saw outflows for a second straight week as investors reacted to the Federal Reserve's first interest rate hike since 2018 and to the uncertainty over the potential ramifications of the Ukraine-Russia war.
Some $47 million were redeemed from digital-asset investment products in the seven days through March 18, according to a report Monday from CoinShares. That amount was smaller than the $110 million of outflows recorded for the prior week. But before the latest spate of redemptions, crypto funds had racked up seven straight weeks of inflows.
"We believe the recent negative sentiment in North America is due to continued jitters over regulation and geopolitical issues caused by the Ukrainian conflict," CoinShares wrote in the report
Broken down by assets, bitcoin (BTC) funds had $33 million in outflows and ether (ETH) funds had $17 million in outflows.
"Most other altcoins saw inflows last week," CoinShares wrote.
So far this year, investors have redeemed a net $46.5 million from crypto funds, leaving the total assets under management at $53.7 billion.
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