Since January 2022, crypto funds witnessed their largest outflow last week. This was largely due to investors withdrawing their funds from Ethereum and Bitcoin, according to a latest report. Outflows to the tune of $134 million became the reason for the week to register itself as the second worst week in 2022 for funds managing digital asset investments. After two consecutive weeks of heavy inflows, this came as quite a surprise. With $131.8 million of redemptions, products related to Bitcoin took the major portions of the outflows. On the other hand, short bitcoin investment products witnessed inflows to the tune of $2 million, which is their largest recorded inflow. Such products are aimed at making profits when bitcoin’s price takes a hit.
The reversal in the price was witnessed after the price of Bitcoin went up from $38,000 to $48,000 in only two weeks by early April. The report underlined that the price appreciation the previous week may have motivated investors to take profits. Apart from this, lower daily trading volumes ($2.3 billion) than the average is also indicative of the fact that there is a lack of significant stress among investors.
Apart from this, Ethereum-centric funds also witnessed outflows to the tune of $15.3 million, leading to year-to-date total outflows to $126 million. In the meantime, altcoin and multiple-asset funds remained strong and recorded inflows of $6 million and $5 million, respectively. Solana, on the other hand, led the way with inflows to the tune of $3.7 million. This brought its year-to-date inflows to $107 million.
