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The outflow from crypto funds continued
According to analysts at CoinShares, the outflow of funds from cryptocurrency investment products between April 29 and May 5 totaled $53.8 million, a decrease from the previous figure of $72.1 million. In the past four weeks alone, the total outflow has reached $200 million, equivalent to 0.6% of the assets under management (AUM). As a result, the volume of funds in crypto funds has experienced a decline of 13% from the peak it reached in mid-April.
After six consecutive weeks of attracting funds, digital asset investment products saw a shift in the market last week, with outflows totaling $30 million. This change in trend coincided with Bitcoin reaching the crucial threshold of $30,000 on Friday, April 14th, suggesting that the recent sell-off was primarily driven by investors taking profits rather than any significant macroeconomic factors. In contrast, Ethereum saw a notable increase in investor confidence, receiving inflows of $17 million, thanks to the successful implementation of the Shapella upgrade.
The majority of profit-taking activity was centered in North America, resulting in outflows of $54 million. However, Germany bucked the overall trend and maintained an optimistic stance, with inflows totaling $29 million. Bitcoin, which had been experiencing four consecutive weeks of inflows amounting to $310 million, underwent a notable change as it faced outflows of $53 million last week. In contrast, there were only minor inflows of $1.5 million observed in short-Bitcoin positions.
Bringing some positive news, Ethereum benefited from growing investor confidence, attracting inflows of $17 million during the same period. These inflows indicate that investors are increasingly optimistic about Ethereum’s prospects following the successful implementation of the Shapella upgrade. Notably, all the inflows came from European investors.