Crypto investment products witnessed a continued sell-off in the last week, followed by the weakening of investor sentiment. Due to this, the investors witnessed two consecutive weeks of outflows.
Crypto exchange-traded products (ETPs) noted around $1.7 billion in outflows in the same week, as reported by CoinShares on February 2. The outflow was under $1.73 billion a week before, equating to $3.43 billion in the last two weeks. Due to this, year-to-date flows turned negative, marking $1 billion in outflow.
The head of research of Coinshares, James Butterfill, stated that “we trust this shows a combination of factors, comprising the appointment of a more hawkish US Federal Reserve Chair, continued whale selling linked with the four-year cycle and increased geopolitical volatility.
With the heavy outflow, total assets under management (AUM) in crypto funds slipped to $165.8 billion, sweeping $73 billion from AUM since October last year, as mentioned by Butterfill.
Outflows due to Bitcoin from crypto funds at a prominent share, having $1.32 billion in BTC investment products, causing $733 million in outflows YTD. Ether funds recorded $308 million in weekly outflows, trading YTD losses at $383 million.
Solana and XRP did not ignore the downturn, having outflows estimated at $31.7 million and $43.7 million, respectively. Meanwhile, short Bitcoin products witnessed $14.5 million of inflows, coming in accordance with a negative market sentiment.
A lot of issuers were affected by the outflows last week, the leader being BlackRock’s iShares ETFs with $1.2 billion. The second and third positions were held by Grayscale Investments and Fidelity, with $300 million and $197 million in outflows, respectively.
On the other hand, ProFunds Group and Volatility Shares went against the river and accumulated $139 million and $61 million in inflows. The head of research also noted that Hyperliquid (HYPE) was one of the noteworthy exceptions, profiting from tokenised precious metals activity.
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