Heavy Outflows Force Investors to Seek Refuge In Multi-crypto Investment Products
Crypto analytics firm CoinShares recently published a report on the state of the crypto market during the third week of May 2022. With the crypto market staying under overall pressure, digital assets investment products registered $141 million in net outflows last week.
The ongoing volatility in the crypto space has led investors to lose confidence with the overall sentiment turning increasing bearish. James Butterfield, head of research at ChoinShares writes:
“Outflows totalling US$154m were seen in the Americas while Europe saw inflows totalling US$12.4m”.
Also, the total assets under management have dropped to their lowest since July 2021, at $38 billion. After the previous week of strong inflows, the Bitcoin funds failed to keep the momentum going. Last week, Bitcoin funds registered total outflows of $154 million. Similarly, short Bitcoin saw net outflows at $1.1 million last week.
The positive thing is that the year-to-date flows remain net positive at US$307 million.
Multi-Crypto Investment Products Perform Better
Instead of opting for a single crypto-focused product, investors have opted for multi-crypto investment products last week. Butterfield noted:
Multi-asset (multi-crypto) investment products remain the stalwart with inflows totalling US$9.7m last week. Inflows year-to-date represent 5.3% (US$185m) of AuM. The investment products have seen only two weeks of outflows this year, much lower relative to its peers.
He further adds that during periods of extreme volatility, investors see multi-asset investment products as a safer alternative. Besides, there were also some minor inflows across the broader altcoin category. Altcoins like Cardano and Polkadot saw inflows totaling at USD 1 million each.
Cryptocurrency investments have remained volatile throughout the month of May as the market has shown extreme volatility following the collapse of the Terra ecosystem. Furthermore, the sell-off in the U.S. equity market has put additional selling pressure on the crypto space as investors have been moving funds to risk-off assets in these times of uncertainty.
- Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings
- Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy
- XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization
- SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown
- Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility
- Cardano Price Forecast As Hashdex Listing Fuels Optimism For $1.27 Breakout
- BONK Price Rally Ahead? Open Interest Jumps as TD Buy Signal Flashes
- Shiba Inu Price to Surge as Whales Buy and Team Commits to Shibarium Growth
- XRP Price Prediction After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
