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$1.7 billion was withdrawn from cryptocurrency exchange-traded funds (ETFs) over the week. Capital outflows have occurred for the second seven days in a row amid changes in investor sentiment, investment company CoinShares reported.
CoinShares Research Director James Butterfill said that over the past two weeks, the cumulative outflow of funds from cryptocurrency ETFs reached $3.43 billion. Since October last year, the total amount of assets under management of crypto funds has decreased by $73 billion, to $165.8 billion.
A significant portion of the funds ($1.32 billion) were withdrawn from Bitcoin-related products, and exchange-traded funds for ether recorded a weekly outflow of funds in the amount of $308 million. Funds linked to the SOL and XRP cryptocurrencies also did not escape losses: the outflow of funds from them amounted to $31.7 million and $43.7 million, respectively.
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Last week, the leader in capital withdrawals was iShares exchange-traded funds of the largest investment company BlackRock with a total of $1.2 billion. They are followed by funds of investment companies Grayscale and Fidelity with outflows of $300 million and $197 million, respectively. ProFunds Group and Volatility Shares funds did not follow the general trend – on the contrary, they attracted $139 million and $61 million, respectively, CoinShares data shows.
CoinShares analyst Butterfill explained investor behavior in anticipation of the return of former US Federal Reserve System (FRS) Governor Kevin Warsh to the post of head of the department. Increased political tension in the world is also worrying investors, and they are rushing to withdraw funds from high-risk assets, the director of research added.
Recently, CryptoQuant analysts said that due to the fall of Bitcoin, investments in cryptocurrency ETFs have become unprofitable: investors prefer to exit positions without a profit rather than with large financial losses.
