CoinShares, a cryptocurrency asset management, broke down the figures in its weekly digital asset fund flows report, which was released on May 3.
For the fourth week in a row, money has been flowing out of large crypto asset funds, with a total of $120.1 million in the last seven days. According to the article, the total for the four-week period was $339 million.
Similar outflows were seen at the start of the year, although CoinShares claims they haven’t been as dramatic yet.
“This doesn’t reflect the same bearishness seen at the beginning of this year, although it is close to the $467m outflows witnessed.”
Bitcoin Funds are in Peril
With $133 million exiting BTC funds, the majority of those outflows were from Bitcoin-based funds, resulting in the largest single week of outflows since June 2021.
Apart from “hawkish language from the US Federal Reserve” and recent price drops, the researchers said it was difficult to pinpoint the exact reason for the departure.
Last week, Ethereum funds experienced a total outflow of $25 million, according to the report. Only five weeks have passed since Ethereum outflows began this year, with a total of $194 million to date.
The majority of altcoin-based funds retreated as well, although multi-asset funds defied the trend with a $1.9 million inflow over the period. Minor inflows were also seen for Terra and Fantom-based items. CoinShares said that only funds based on the FTX coin experienced measurable inflows of $38 million.
The outflows were similarly split geographically, with the Americas accounting for 41% and Europe for 59% of the total. ProShares lost the most money, losing $91 million, followed by ETH Group and 21Shares. Of course, who lost $35.5 million and $32.5 million, respectively. Purpose defied the trend with a $54.7 million influx.
Total year-to-date fund flows are still positive, but at $270 million, that amount is diminishing, especially given the present mood. CoinShares saw a 42 percent drop in total revenue in the first quarter.
Cryptocurrency markets continue to decline.
According to CoinGecko, the total crypto market capitalisation has dropped to its lowest level since mid-March. The large number now stands at $1.81 trillion, down 1.2 percent in the last 24 hours.
Bitcoin fell below $38,000 earlier today after losing a similar amount of money. Then, while Ethereum is now just around $2,800, down 1.8 percent on the day. With the exception of NEAR, which is up 2.7 percent on the day. That’s, all of the cryptocurrencies in the top twenty are in the red at the time of writing.
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