Global institutional investors remained bearish on crypto assets as digital asset investment products saw net outflows of $73 million for the week ended 14 January, the fifth straight week of outflows, said digital asset manager CoinShares in a report. During the five-week period, the total net outflows stood at $532 million.
In the previous week, crypto funds, which are generally preferred by institutional investors, saw net outflows of $207 million, with bitcoin funds witnessing $107 million for the week ending 7 January 2021.
In the recent past, crypto assets have remained depressed in direct response to the Federal Open Market Committee (FOMC) minutes, which revealed the US Federal Reserve’s concerns for rising inflation.
According to CoinShares, the sell-off from funds mark the sharpest outflows since 2018 when viewed proportionally as a percentage of total assets under management (AUM).
“However, on a daily basis, for the first time this year, we saw inflows on Wednesday and Friday, suggesting the bearish sentiment is beginning to abate after recent positive price moves," the digital asset manager said.
In specific crypto assets, bitcoin-based funds saw net outflows of $55 million during last week, with four out of the last five weeks seeing outflows totalling $317 million. Further, total assets under management (AUM) in bitcoin reached a three-month low of $35 billion mid-week.
Further, ethereum saw outflows totalling $30 million last week (ending 14 January), entering its sixth week of net outflows totalling $230 million. From a relative perspective, ethereum remained the focus of negative sentiment with outflows representing 1.5% of AUM during the period.
On the other hand, solana remained an investor favourite
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