Despite the rise in Bitcoin price, investment products of the cryptocurrency still suffer capital withdrawal, while at the same time money is flowing into Ethereum and altcoin products.
Despite the market’s positive trajectory, institutional crypto products have suffered withdrawals for the fifth week in a row.
CoinShares, an institutional asset manager, projected that outflows reached $26 million for the week in its Digital Asset Fund Flows Weekly report on August 9.
However, compared to May and June, when withdrawals reached a record $141 million per week, the report adds that outflows have decreased.
Despite the fact that BTC has gained 17.5 percent in the last week, Bitcoin funds have lost $33 million.
With a $63.3 million outflow during the time, CoinShares’ own BTC product was the greatest loser, while Grayscale, the world’s largest crypto asset management, remained unchanged.
The cumulative value of assets managed by Grayscale funds has climbed back above $40 billion for the first time since mid-May, according to Grayscale’s latest statement on August 10.
08/09/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $40.4 billion$BTC $BAT $BCH $LINK $MANA $ETH $ETC $FIL $ZEN $LTC $LPT $XLM $ZEC $UNI $AAVE $COMP $CRV $MKR $SUSHI $SNX $YFI $UMA $BNT $ADA pic.twitter.com/ju95J9n68H
— Grayscale (@Grayscale) August 9, 2021
However, after last week’s successful London upgrades, Ethereum-based financial products witnessed inflows of $2.8 million for the week.
Ether-based products currently account for 26% of money invested in institutional crypto assets.
Some altcoin funds received tiny inflows, such as XRP, Bitcoin Cash, Cardano, and multi-asset funds, which each saw inflows of between $1.1 million and $800,000.
CoinShares also noted that 37 new crypto funds have been launched in 2021, surpassing the 30 crypto funds launched in 2018:
“We have seen the number of funds/investment products listed accelerate recently with a record 37 launched this year compared to the previous high of 30 seen in 2018.”
Following recent market momentum, the combined assets under management (AUM) of all institutional crypto products has surpassed $50 billion, the highest level since mid-May.
CoinShares’ financials for the first half of 2021 have also been released, reflecting a total income of $81.2 million.
As a result, CoinShares has made three times than much in the first half of this year as it did in the entire year of 2020.
CoinShares’ total AUM was $3 billion as of June 30, 2021, up 27.6% from the end of December 2020.
