Regulatory Concerns Hit Weekly Crypto Flows

Institutional crypto investors remained jittery last week as outflows climbed significantly. In total, nearly $110 million worth of investment left crypto products during the mentioned period.

The weekly digital asset fund flows report by CoinShares shows that the latest outflows ended the 7-week run of crypto inflows. Bitcoin investment products witnessed outflows of $70 million. Additionally, BTC trading volumes have dipped sharply in the last week.

On a relative basis, Ethereum (ETH) saw the largest weekly outflows. According to CoinShares, almost $51 million worth of investment left ETH investment products. Moreover, minor outflows were seen in Solana, XRP and Polkadot.

“Digital asset investment products saw outflows totaling US$110m last week following a 7-week run of inflows. US$80m of the outflows derived from North America with the outflows beginning at the start of last week suggesting they are a response to the US Presidential Executive Order to study digital assets more deeply. Given there has been little price response and that outflows of US$30m were also seen in Europe, highlights the reasons are unclear. Regulatory concerns and geopolitics remain at the forefront of investors’ concerns for digital assets,” the report noted.

Multi-Asset Products

While most of the coins saw major outflows last week, some digital assets gained decent traction among institutional investors. With inflows of almost $12 million, multi-asset products performed better than some of the leading digital currencies.

“Multi-asset (multi-coin) and blockchain equity investment products saw inflows totaling US$12m and US$4.1m last week and remain the most popular amongst investors with inflows representing 3.2% and 6.7% of AuM respectively,” CoinShares added.

Furthermore, Cardano (ADA) and Litecoin (LTC) attracted minor inflows worth $0.2 million last week. Overall, the latest week was a tough one for digital currencies as the total crypto assets under management (AUM) dropped below $49 billion. BTC assets under management stood at $32.8 billion.