Breaking down the outflows in terms of asset class, $69.6 million exited Bitcoin amid low volumes, followed by $50.6 outflows from Ether. Outflows from other coins, including Solana, Ripple and Polkadot, were modest at $0.3 million, $0.7 million and $0.9 million, respectively.

After seven-week inflows from institutional investors, cryptocurrencies and crypto funds, last week registered outflows totaling $110 million, suggesting that regulatory concerns remain a key issue for digital assets, investment firm CoinShares said in a summary of investment flows. of digital assets for the week ended March 11. Of the total outflow, $80 million came from North America, which began early last week, suggesting it is in response to US President Joe Biden’s executive order calling for the risks and benefits of cryptocurrencies.

The executive order, signed on March 9, largely called for action to assess potential financial and economic risks, including challenges related to illicit use of digital assets, and develop appropriate policy recommendations to help US consumers, investors and protect companies. The order was also aimed at striving for the country’s leadership in digital asset technology. It further called for the exploration of a US central bank (CBDC) digital currency.

The remaining $30 million outflow occurred in Europe. While the reasons are unclear, regulatory and geopolitical concerns remain at the forefront of investor concerns about digital assets, CoinShares said.

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Breaking down the outflows in terms of asset class, $69.6 million exited Bitcoin amid low volumes, followed by $50.6 outflows from Ether. Outflows from other coins, including Solana, Ripple, and Polkadot, were modest at $0.3 million, $0.7 million, and $0.9 million respectively, even as Cardano and Litecoin reported inflows of $0.2 million each. .

Multi-asset or multi-coin products and blockchain equity investment products also saw inflows of $12 million and $4.1 million last week. In fact, the two were the most popular with investors, with inflows of 3.2 percent and 6.7 percent of assets under management (AuM), respectively. Total crypto AuM stood at $48,627 million last week.

Importantly, despite the geopolitical events, investors remained committed to crypto products and funds until the first week ending March 4. Inflows in digital asset investment products totaled $127 million last week, up from the previous week, “suggesting that investors continue to support digital assets,” CoinShares had noted. Weekly inflows during the week were led by Bitcoin, with $95 million contributed by investors – the largest single weekly inflow since early December 2021.


This post Institutional investors withdraw money from crypto funds after seven-week influx was original published at “https://www.financialexpress.com/digital-currency/institutional-investors-pull-money-out-of-crypto-funds-after-seven-week-run-of-inflows/2463290/”

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