Crypto funds recorded the largest outflow in six months

Crypto market news, investments in cryptocurrencies
Crypto market news, investments in cryptocurrencies

The outflow of funds from their cryptocurrency investment organizations between August 19 and 25 was the largest since March 2023 – $168 million, according to analysts at CoinShares.

1_4bdR1zrt7ZpOiu32Hy5fkg
Weekly outflow of funds from crypto funds. Data: CoinShares.

Of this amount, $149 million came from organizations associated with bitcoin. In the altcoin market, Ethereum recorded a $17 million outflow, while Ripple and Litecoin had marginal gains of $500,000 and $440,000, respectively.

Snimok-ekrana-2023-08-29-v-17.13.41
Inflow of funds to crypto funds for digital assets. Data: CoinShares.

Over the past 18 weeks, total assets under management have fallen by 89%.

According to experts, market sentiment continues to fall amid “exceptionally low trading volume.” At the same time, traders continue to close their short positions.

“The downside stems from the realization that the creation of a spot bitcoin ETF in the US is likely to take longer than expected, given the recent delays by the US Securities and Exchange Commission,” said James Butterfill, head of research at CoinShares.

Analysts also said that last week the total valuation of investment crypto products was $1.3 billion, which is about 16% below the annual average.

Recall, according to Glassnode, the largest fall of bitcoin since the beginning of the year (by 7.2%) increased the share of “unprofitable” coins of short-term investors to 88.3%.

Found a mistake in the text? Select it and press CTRL+ENTER

ForkLog Newsletters: Keep your finger on the pulse of the bitcoin industry!

Leave a Reply