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Investors Crawl Back to Ether Funds as Bitcoin Outflows Rise

Investors Crawl Back to Ether Funds as Bitcoin Outflows Rise

Investors Crawl Back to Ether Funds as Bitcoin Outflows Rise

Increasing altcoin flows impliy investors are starting to diversify across their digital asset holdings.

Increasing altcoin flows impliy investors are starting to diversify across their digital asset holdings.

Increasing altcoin flows impliy investors are starting to diversify across their digital asset holdings.

AccessTimeIconJul 19, 2021, 3:13 PM
Updated Mar 2, 2023, 10:43 PM

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Digital-asset funds have attracted capital over the past two weeks, albeit at a slower pace as investors remain cautious after the crypto crash in May. It appears that investors are warming up ether, which saw a third consecutive week of inflows totaling $11.7 million, according to a report by CoinShares.

Overall, net inflows to digital asset funds totaled $2.9 million for the week ending July 9, down from $4 million during the previous week. Fund flows have weakened following a period of strong investor demand during bitcoin’s rally in Q4 2020.

  • Minor outflows were seen in bitcoin investment products totaling $7 million last week, which coincided with slowing trading volumes, according to CoinShares.
  • “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 is present.”
  • Multi-asset investment products were the most popular last week with inflows totaling $1.2 million, and now represent 16.5% of total assets under management, according to CoinShares.
  • Aside from ether, investors have also flocked to other altcoins such as Binance coin and cardano, which saw inflows of $400,000 and $600,000, respectively.
  • Increased altcoin flows, although small compared to bitcoin, imply investors are starting to diversify across their digital asset holdings.

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