Falls in bitcoin- and ethereum-focused funds, solana and polkadot
The erratic behavior of the cryptocurrency market in the last week and the short-term bearish outlook has shown its grip on investment products in digital assets, which have suffered the largest weekly redemptions on record.
Following a 17-week streak of inflows, cryptocurrency fund outflows totaled $ 142 million over the seven days between Dec. 11 and Dec. 17, according to CoinShares, a digital asset manager that collects industry data. . The largest outflow ever recorded was in early June, when net repayments amounted to $ 97 million.
Investment funds focused on bitcoin, the world’s largest cryptocurrency by market capitalization, posted $ 89 million worth of outflows last week. This is a turnaround from the $ 145 million tickets in the previous week.
Funds associated with Ethereum’s ether had record outflows last week totaling $ 64 million . Solana’s SOL-focused funds had outflows of $ 6.7 million, while Polkadot’s DOT-related funds had $ 2.5 million of net repayments.
According to the report, there have been sizable exits from all risk assets , not just digital ones. One of the triggers may have been recent signals from the US Federal Reserve that it is accelerating the withdrawal of monetary stimulus that helped prop up asset prices in the past two years.
CoinShares noted that cumulative inflows into cryptocurrency funds reached a record $ 9.5 billion this year, dwarfing the 2020 total of $ 6.7 billion.