Crypto outflow top $200 million in one week
Crypto-based products in the last five weeks have seen outflows totaling $465 million.
For the fourth consecutive week, crypto investments products have recorded massive outflows, with the most recent totaling over $200 million in the past week.
Bitcoin products top outflow list with $107 million
According to a newly released report from CoinShares, Bitcoin-based investment products during the just concluded week were the highest as it saw a record outflow of $107 million.
It continued that Ethereum-based products also saw a high outflow during the week. Per the report, outflows from the asset were around $39 million during the past week, while in the last five weeks, outflows from ETH would cumulatively stand at $200 million.
On a proportional basis to this is far greater than Bitcoin’s outflows representing 1.4% of AuM.
The report revealed that there were $37 million in outflows for multi-asset funds, while blockchain equities investment products saw $10 million in outflows. However, Solana and XRP were able to buck the trend as they saw minor inflows.
Speaking on what could be the cause of this level of recent outflows, an investment strategist with CoinShares, James Butterfill, wrote:
“[This is a] direct response to the FOMC minutes which revealed the US Federal Reserve’s concerns for rising inflation, and the fear amongst investors of an interest rate hike.”
Per available information, the outflow began towards the end of last year. Since then, crypto investments products have seen a cumulative outflow of $465 million, which is roughly 0.8% of the total assets under management (AuM) in the space.
Interestingly, before the current run of outflows began, crypto investment products had seen 17 consecutive weeks of inflows which totaled $3.6 billion.
Crypto market remains in bear zone
The entire crypto market in recent days has been bearish, with Bitcoin trading for as low as $39,796 within the last 24 hours, according to data from CryptoSlate.
Ethereum also dropped to as low as $2,947, with its gas fees spiking to levels last seen on October 27, 2021.
Asides from stablecoins, other digital assets on the top 10 ranking of cryptocurrencies by market cap like Binance Coin, Terra, and others have lost an average of 10% of their values within the last seven days.
In fact, the industry’s market cap has dropped from its over $2 trillion figure to around $1.9 trillion as of this morning.