A leading digital asset manager says crypto investments fell by nearly $50 million last week despite an increase in altcoin inflows.
CoinShares says that most of last week’s outflows were to be found in North America, according to its Digital Asset Fund Flows Weekly report.
Investments in digital assets fell for a second consecutive week last week, totalling $47 million.
Outflows were dominated by North American providers, accounting for 98% of the outflows, while flows in Europe were relatively flat. Moreover, jitters over regulation and geopolitical issues caused by the Ukrainian conflict may have contributed to the recent negative sentiment in North America.
- Digital investment products associated with Bitcoin, the leading cryptocurrency asset, experienced the biggest outflows last week.
- Outflows from Bitcoin totalled $33 million, half of the amount seen in the previous week. The outflows in the last two weeks have totalled $101 million, while year-to-date flows stand at $64 million.
- The week prior saw fewer outflows from Ethereum investment products thanks to market uncertainty.
- “Ethereum lost $17 million last week, a much lower amount than the previous week when it lost $50 million,” the research stated.
Last week, many altcoin investment products enjoyed inflows, compared to Ethereum and Bitcoin. The top three winners were XRP, Polkadot, Solana and Litecoin taking in $1.1 million each, $0.8 million, $0.7 million, and $0.3 million respectively.
A total of $0.6 million in inflows were recorded for multi-asset digital investment products last week.
Moreover, it’s critical to note that cryptocurrency investors are becoming increasingly concerned about the likelihood of the U.S. Federal Reserve rate hikes throughout 2022 to prevent inflation.
Investors will move away from risky asset classes like crypto assets in case global economies enter a recession, securing protection in Treasury bonds and U.S dollars.