Assets under management in digital funds reach their highest level since May despite the continued outflow
Digital asset investment products reach $50 billion despite experiencing a fifth consecutive week of outflows. This is according to the latest market report by CoinShares, which looked at the investments in digital asset funds.
Per the report, digital asset investment products recorded a fifth week of outflows totalling $26 million. However, the magnitude of the outflow last week was lower than what was experienced in May and June.
CoinShares said, “Following recent price rises, total investment product AuM is now back at US$50bn, the highest level since mid-May.” The total assets under management rose last week thanks to the surge in the prices of Bitcoin and Ether.
Bitcoin is currently trading above $45,000 per coin, while Ether crossed the $3,000 mark a few days ago. Ethereum is fast becoming a favourite amongst investors, with the market share of Ether now rising.
“Ethereum market share is again rapidly rising and now represents 26% of investment products, compared to just 11% at the beginning of 2021,” the report added.
Bitcoin recorded the highest outflow
CoinShares pointed out that most of the outflow came from Bitcoin investment products, with the leading cryptocurrency suffering the most from investors’ decisions. “Despite the positive price movements, Bitcoin continued to bear the brunt of the outflows, totalling US$33m last week,” the company reported.
Ether hasn’t seen the same level of outflows in recent months relative to Bitcoin and recorded a minor inflow of $2.8 million last week. Ether is not the only altcoin to record inflows last week, with XRP, Bitcoin Cash and Cardano also recording minor inflows during that period.
The confidence in the crypto market may be very high since more investment products are being launched despite the current bearish sentiment. According to CoinShares, the market saw the number of funds/investment products listed reach a record 37 in 2021, surpassing the previous high of 30 in 2018.