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Crypto Funds Hit by Redemptions as Investors Retreat From Bitcoin

Crypto Funds Hit by Redemptions as Investors Retreat From Bitcoin

Crypto Funds Hit by Redemptions as Investors Retreat From Bitcoin

Investors have been diversifying out of bitcoin and into altcoin investment products, according to CoinShares.

Investors have been diversifying out of bitcoin and into altcoin investment products, according to CoinShares.

Investors have been diversifying out of bitcoin and into altcoin investment products, according to CoinShares.

AccessTimeIconMay 17, 2021, 7:01 PM
Updated Mar 2, 2023, 8:51 PM

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Investors pulled some $50 million from cryptocurrency funds last week, the first net redemptions of the year, as bitcoin's (BTC) price tumbled.

According to a report Monday by CoinShares, outflows from bitcoin-focused funds totaled a record $98 million in the seven days through May 14, while investment products focused on other digital assets continued to pull in new money.

The net amount still represents a small fraction of the $5.6 billion put into cryptocurrency funds this year, but the outflows show how quickly some investors were to retreat as bitcoin began a price pullback that has now extended to as much as 35% from April's all-time high.

"Investors have been diversifying out of bitcoin and into altcoin investment products," according to CoinShares.

  • Investor demand for investment products focused on ether (ETH) continued to rise, totaling $27 million last week.
  • May marks the first month there has been more investment product trading volumes in ether relative to bitcoin.
  • Digital asset investment products focused on ether traded a total of $4.1 billion for the week, versus bitcoin's $3.1 billion.
  • “We also saw inflows into other digital assets, the most popular being cardano (ADA) and polkadot (DOT), with inflows of $6 million and $3.3 million, respectively.”

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