Crypto Investment Funds Experience Ongoing Outflows

Crypto Investment Funds Experience Ongoing Outflows

Despite the recent positive news of BlackRock's spot Bitcoin ETF application, crypto investment funds are facing their ninth consecutive week of outflows, according to asset manager CoinShares. This ongoing trend indicates that institutional investors remain cautious when it comes to crypto asset funds.

CoinShares released its weekly asset flows report on June 19, revealing that the total outflows have now reached $423 million over the nine-week period. However, there is a slight silver lining as the outflows for the most recent week slowed down to $5.1 million, compared to $88 million in the previous week.

Interestingly, while Bitcoin funds experienced minor outflows of just $500,000, the majority of the outflows were from Ethereum-based funds, which lost $5 million. On the other hand, the altcoin market slump prompted investors to add $2.4 million to altcoin-based funds. Ripple (XRP), Cardano (ADA), and Polygon (MATIC) were the main focus, with inflows of $1 million, $600,000, and $200,000, respectively.

The report highlights that despite regulatory improvements in Hong Kong, there have been no significant inflows into exchange-traded products (ETPs) throughout the year. Total assets under management for crypto investment funds remain relatively low at $39 million.

In terms of market outlook, crypto markets have seen a slight increase during the Asian trading session, with the total market capitalization reaching $1.11 trillion, up 1.2% from the previous period. Bitcoin has gained 1.8% to trade at $26,907, showing a 3.6% increase compared to the previous week. However, BTC remains range-bound with low volumes and volatility, although its market dominance has reached a 2-year high.

Ethereum prices, on the other hand, have remained unchanged at $1,736, the same level as the previous week.

The continued outflows from crypto investment funds suggest that institutional investors are still exercising caution and may be hesitant to fully commit to the crypto market. While the positive news of BlackRock's Bitcoin ETF application generated some minor inflows, the overall trend indicates ongoing skepticism. The regulatory landscape and market volatility could be contributing factors to this cautious approach.

As the crypto market continues to evolve, it will be crucial for investment funds and platforms to address investor concerns, enhance transparency, and provide regulatory compliance. Building trust with institutional investors is essential for the long-term growth and adoption of cryptocurrencies as an asset class.

Individual investors should also consider conducting thorough research and understanding the risks associated with investing in crypto assets before making any investment decisions.

Back to blog