Bitcoin crash puts a dent into crypto fund inflows: Report
Digital asset investment products or crypto funds saw inflows totalling $184 million last week (till 3 December), although sharp price weakness at the end week did lead to $40 million outflows late Friday, according to digital asset manager CoinShares. However, overall inflows suggest that investors continued to see recent price weakness as a buying opportunity.
Bitcoin opened last week at $54,815 and rallied to a high of $59,041, before plummeting to a low of $45,032 on Saturday, showing a more than 30% fall. The crypto market has witnessed a major sell-off over the past few sessions amid spiking inflation forcing central banks to tighten monetary policy.
Bitcoin saw inflows totalling $145 million last week however, it suffered at the end of the week with outflows of $42 million on Friday and bore the brunt of investor jitters.
“Bitcoin volumes rose to $15 billion for Friday, above the typical $8 billion a day on average for November and December. We did not see a significant rise in investment product volumes, which were $5.8 billion for the whole week,” CoinShares said in a report.
The world’s second-biggest digital asset, ethereum, saw inflows totalling $25 million but like bitcoin, saw minor outflows of $4.7 million last Friday.
According to the report, Polkadot, the coin that helps different blockchains interoperate, saw outflows totalling $3 million last week. The majority of outflows came in the latter half of the week, but it may also be due to uncertainty surrounding the parachain auctions which finalize on 17 December, the report added. Parachain auctions are auctions that are held on the Polkadot.
Solana saw continued inflows totalling $4.6 million for the week, seemingly unaffected by the recent price jitters.
In terms of crypto fund providers, the world’s biggest digital asset manager, Grayscale, remained steady with total assets under management (AUM) of $50.99 billion, followed by CoinShares at $5.88 billion and 3iQ with an AUM of $2.65 billion.
The total assets under management (AUM) of crypto fund providers were at $73.04 billion for the week.
Never miss a story! Stay connected and informed with Mint.
our App Now!!