The cryptocurrency market is currently trading in a range as Bitcoin and Ethereum have failed to break above key resistance levels. As a result, institutional inflows in crypto investment products have dried up.
According to the latest weekly digital asset fund flows report published by CoinShares, one of the largest cryptocurrency asset management firms, digital asset investment products saw minor outflows of approximately $4 million last week.
CoinShares highlighted that the total trading volumes in cryptocurrency investment products reached $1.58 billion last week, which is the lowest weekly level since October 2020. Bitcoin saw outflows worth nearly $7 million in the last week.
Apart from Bitcoin, other cryptocurrency assets including Ethereum, Cardano and Binance Coin attracted minor inflows in the last seven days.
“Ethereum saw very minor inflows totaling US$0.8m while Binance and Cardano saw inflows of US$0.4m and US$0.6m respectively. Multi-asset investment products were the most popular last week with inflows totaling US$1.2m. Inflows year-to-date now total US$362m representing 16.5% of AuM (assets under management), proportionally being larger than Bitcoin (15.6% of AuM) and Ethereum (9.9% of AuM),” CoinShares mentioned in the report.
Regional Cryptocurrency Inflows
CoinShares highlighted an interesting trend in the global cryptocurrency market. In terms of weekly investment into crypto products, North American digital asset management firms saw consistent inflows during the last few weeks. On the other hand, European providers saw consistent outflows during the same period. “In recent weeks, there has been a regional divide in Bitcoin inflows with North American providers seeing consistent inflows while their European counterparts have continued to see outflows, suggesting a geographic divergence in sentiment at present,” CoinShares added.
Due to the latest dip in the cryptocurrency market, the overall value of Grayscale’s digital assets under management (AUM) has dropped significantly. Earlier this week, the total value of Grayscale’s crypto AUM dipped below $30 billion. In May 2021, the overall value of the company’s digital assets under management crossed $52 billion.
Source: Read Full Article