Crypto funds saw net outflows of $134 million in the week to 8 April, marking the second biggest weekly outflows this year, according to a report by digital asset manager CoinShares.
Bitcoin took the brunt of the outflows, which totalled $132 million during the seven-day period. Meanwhile, ethereum funds saw outflows totalling $15.3 million last week bringing its year-to-date outflows to $126 million.
Crypto funds had witnessed net inflows of $180 million in the previous week (26 March to 1 April).
Earlier, global digital asset investment products had witnessed net outflows of $207 million for the week ended 7 January 2022.
The outflows were broad based across fund providers in both Europe (39%) and the Americas (61%). Further, trading volumes were low for investment products, trading $2.5 billion for the week versus the year average of $2.9 billion.
“We believe price appreciation in the previous week may have prompted investors to take profits last week," CoinShares said in the report.
The price of the world’s biggest crypto asset, bitcoin, rose to the $47,459 level during 26 March to 1 April period. However, during the seven-day period ended 8 April, bitcoin prices dropped to $42,316.
Crypto market has remained depressed over the past few weeks over potential US Federal Reserve interest rate hikes, rising inflation and Ukriane-Russia war.
Bitcoin was 5.5% down at $39,987.81 at around 12.15 PM IST on Tuesday, as per CoinGecko, a digital currency price and data platform.
According to CoinShares, bitcoin's latest volumes do not suggest any significant stress amongst investors, with investment products comprising only 7.6% of total bitcoin volumes, just above the 7% long-term average.
“However, overall bitcoin volumes remain lower than average at $2.3 billion per day versus $3 billion (on trusted exchanges)," said CoinShares.
During the week ended 8 April, multi-asset investment products, those focusing on multiple altcoins, saw $5 million in net inflows. Solana-focused products also had a good week, bringing in $3.7 million. Cardano digital investment products took in $1 million over the same period.
In terms of individual crypto fund providers, the world’s biggest digital asset manager, Grayscale had a total AUM of $38.64 billion, followed by CoinShares at $4.21 billion and 3iQ with an AUM of $2.35 billion. The total AUM of crypto fund providers was at $56.65 for the week ended 8 April 2022.
