Investors withdrew about $54 million from crypto funds last week, and over the past nine weeks, crypto investment products have experienced more than $450 million in outflows.
According to CoinShares data, crypto hedge funds have been recording significant outflows over the past two months. A total of $455 million has been withdrawn by investors from crypto exchange-traded products (ETP) over the past nine weeks.
Between September 11 and September 18, capital outflows from crypto funds totaled $54 million. Investors were most active in withdrawing funds from ProShares — $40.6 million was withdrawn from the company’s reverse Bitcoin exchange-traded fund, accounting for about 70% of all withdrawals during the period. Around 85% of funds were withdrawn in BTC — last week, crypto funds traded the first cryptocurrency for more than $45 million. Ethereum funds have only lost about $5 million over the last seven days.
That said, altcoin-based ETPs showed some inflows last week, in particular:
- Solana (SOL) ETPs raised $700,000, with the annualized figure increasing to $26 million;
- Cardano (ADA) ETPs received $430,000, increasing the annualized figure to $6 million;
- Ripple (XRP) ETPs added $130,000, reaching $14 million year-to-date.
CoinShares analysts also found out which regions investors are most active in withdrawing funds from ETPs. Thus, the leader of this rating was the United States. Over the last week, local investors withdrew $41.1 million from crypto funds, which is 77% of the total amount of capital withdrawn during the week. This figure for the year is a record $298 million in the region. Canadian investors aren’t lagging behind in the level of withdrawals in annualized terms — $216 million. However, the region was only accountable for an outflow of $4.9 million last week. European investors also demonstrated active withdrawals over the past week. Germans withdrew $5.9 million and Swedes withdrew $3.2 million.
Regulatory uncertainty and legal hurdles from regulators in the U.S. are among the main reasons for the prolonged outflows from crypto funds. In particular, the delay of the Securities and Exchange Commission (SEC) in making decisions on the applications of Grayscale, BlackRock, and other investment companies doesn’t improve the market’s stability.
Institutional investors are showing high interest in crypto exchange-traded funds, and crypto investments remain attractive to hedge funds despite market fluctuations and regulatory uncertainties.