The assets under the management of crypto funds have slumped to their lowest level since July 2021, due in part to the recent price plunge in crypto and equity markets, driven in part by the Fed’s plan to shrink its balance sheet from next month.
Net $143 Million Outflow From Cryptocurrency Funds Last Week
CoinShares reported that in the week to May 20, the value of assets managed by digital asset funds fell to $38 billion, down nearly $143 million. Thus, the second largest fund outflow of the year was realized.
Edward Moya, senior market analyst at trading platform Oanda, commented:
“Confidence in crypto is waning as both individual and institutional investors who entered the cryptocurrency space in the past year have been deeply at risk.”
Two weeks ago, we were faced with the exact opposite of the current situation. After the collapse of the Terra Blockchain and LUNA token stablecoin UST, investors bought at the market bottom, providing the largest inflow of funds into crypto funds in 2022.
However, the market, which continued unfavorably in the current situation, reversed the business and caused a fund outflow.
Biggest Loss in Bitcoin Funds
bitcoin funds took the largest margin on the negative side, with $154 million outflows last week, losing about half of the previous week’s net $299 million in funding.
Purpose, which manages North America’s largest Bitcoin ETF service, suffered the most with a net outflow of $150 million.
While the North American funds had a net fund outflow of 154 million dollars, the European funds realized a net fund inflow of 12 million dollars.
However, multi-funds with multiple assets were positive news this week, with net fund inflows of $9.7 million.
*Not investment advice.