Crypto funds experience $942 million outflow, ending 7-week inflow streak

The recent downturn in cryptocurrency prices has prompted the first outflows from funds in nearly two months.

According to a report by CoinShares, a leading asset management firm, crypto investment products experienced a noteworthy shift with record weekly outflows amounting to $942 million. This marks the first outflow after a seven-week streak of inflows totaling $12.3 billion. During the same period, trading volumes in Exchange-Traded Products (ETPs) reached $28 billion, representing approximately 66% of the volume from the previous week.

Image: CoinShares

James Butterfield, the head of research at CoinShares, highlighted the impact of a recent price correction on investor sentiment, leading to reduced inflows into new Exchange-Traded Fund (ETF) issuers in the US. He noted that while there were $1.1 billion inflows into new ETF issuers, it was partially offset by significant outflows of $2 billion from Grayscale, a leading crypto asset manager.

The outflows primarily affected Bitcoin, with an exit totaling $904 million. Ethereum, Solana, and Cardano also experienced outflows amounting to $34 million, $5.6 million, and $3.7 million respectively. However, some altcoin-related products like Polygon and Avalanche saw net inflows of $16 million amidst this shifting landscape.

Regionally, Sweden, Switzerland, Hong Kong, and Germany recorded notable outflows, amounting to $37 million, $25 million, $35 million, and $4 million, respectively. In contrast, Brazil and Canada witnessed inflows totaling $9 million and $8.4 million, respectively.

Brazil has demonstrated a consistent trend of inflows into crypto funds, experiencing 13 consecutive weeks of positive inflows totaling $101 million in 2024.

However, the year-to-date flows into crypto funds still surpass $12 billion in 2024. Despite experiencing significant investor interest in 2023, Solana has only seen a net inflow of $1 million this year, whereas Ethereum has attracted $87 million during the same period.

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