Some $134 million flowed out of digital asset funds in the week through April 8 as investors took profits and fled bitcoin-focused funds.
Crypto funds last week suffered their largest outflow since January as investors withdrew money from bitcoin and Ethereum funds, CoinShares reported on Monday.
The funds had $134 million in net outflows, which marked the second worst week in the year for funds that manage digital asset investments and represented a sharp turn after two straight weeks of heavy inflows.
Bitcoin-related products took the lion’s share of the outflows with $131.8 million of redemptions. Short bitcoin investment products, which bet on making profits when bitcoin’s price declines, saw inflows totaling $2 million, their largest inflow on record.
The reversal came after the price of bitcoin (BTC), the largest cryptocurrency by market capitalization, rose to $48,000 from $38,000 in only two weeks by early April.https://imasdk.googleapis.com/js/core/bridge3.509.0_en.html#goog_19566469782
“We believe price appreciation the previous week may have prompted investors to take profits,” the report said. Lower daily trading volumes ($2.3 billion) than the average also suggest that there isn’t significant stress among investors.
Funds focused on Ethereum (ETH) saw $15.3 million in outflows, which brought year-to-date total outflows to $126 million.
Meanwhile, altcoins (excluding Ethereum) and multiple-asset funds stayed resilient and recorded inflows of $6 million and $5 million, respectively.
Breaking down the funds by assets, solana (SOL) led the way with $3.7 million in inflows, down from $8.2 million the week before, bringing its year-to-date inflows to $107 million.
Outflows were broad among providers as both European and America-based funds booked outflows, with American providers representing 61% of the outflows.
Funds managed by ProShares and ETC Group took the biggest hit with outflows of $64.5 million and $45.8 million, respectively.
BY: Krisztian Sandor
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