Bitcoin Crash Cuts Crypto Fund Inflows: Report

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Investment products in digital assets or crypto funds saw inflows totaling $ 184 million last week (through December 3), although strong price weakness at the end of the week led to exits. $ 40 million Friday night, according to digital asset manager CoinShares. However, the aggregate entries suggest that investors continued to view recent price weakness as a buying opportunity.

Bitcoin opened last week at $ 54,815 and peaked at $ 59,041 before dropping to $ 45,032 on Saturday, showing a drop of over 30%. The crypto market has seen a massive sell off in recent sessions amid soaring inflation forcing central banks to tighten monetary policy.

Bitcoin recorded inflows totaling $ 145 million last week, but suffered on the weekend with outflows of $ 42 million on Friday and suffered the brunt of investor nervousness.

“Bitcoin volumes hit $ 15 billion on Friday, above the $ 8 billion per day average for November and December. We did not see a significant increase in investment product volumes, which were of $ 5.8 billion for the whole week, ”CoinShares said in a report.

The world’s second largest digital asset, ethereum, saw inflows totaling $ 25 million, but like bitcoin, minor outflows of $ 4.7 million were recorded last Friday.

According to the report, Polkadot, the coin that helps different blockchains interoperate, recorded releases totaling $ 3 million last week. The majority of the cash outflow came in the second half of the week, but it may also be due to the uncertainty surrounding the parachain auctions which end on December 17, the report added. Parachain auctions are auctions that take place on the Polkadot.

Solana saw continued inflows totaling $ 4.6 million for the week, apparently unaffected by recent price swings.

In terms of crypto fund providers, the world’s largest digital asset manager, Grayscale, remained stable with total assets under management (AUM) of $ 50.99 billion, followed by CoinShares at 5.88 billion. dollars and 3iQ with an AUM of $ 2.65 billion.

The total assets under management (AUM) of crypto fund providers stood at $ 73.04 billion for the week.

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