Crypto Funds Lost a Record $1 Billion Last Week: CoinShares

During the previous week, there was a total outflow of $942 million, as stated in a report by CoinShares. The previous week was better for alternative cryptocurrencies, with net inflows totaling sixteen million dollars. These inflows were particularly concentrated in polkadot, avalanche, and litecoin.

A record amount of money was deposited into digital asset investment products over the course of the past few months, which resulted in the products seeing record weekly outflows last week.

The outflows from cryptocurrency funds during the previous week totaled $942 million, according to CoinShares. The outflows were led by $2 billion in withdrawals from the Grayscale Bitcoin Trust (GBTC). 

Following a series of seven weeks of inflows totaling $12.3 billion, this broke the record that had been set.

The outflow that occurred over the previous week coincided with the downward fluctuation in the price of bitcoin (BTC), which dropped below $61,000 only a few days earlier, having previously been at $73,000.

According to CoinShares, "We believe the recent price correction led to hesitancy from investors, which led to much lower inflows into new ETF issuers in the United States, which saw $1.1 billion inflows." "Comparatively compensating for the significant outflows of $2 billion that Grayscale, the incumbent, experienced last week."

The viewpoint expressed by CoinShares was confirmed by a research report published by Coinbase, which stated that the engine behind the rise in withdrawals was GBTC. The report also mentioned that the bankruptcy estate of Genesis Global, which was holding tens of millions of shares in the fund, may be a possible source of selling pressure.

As per the data by CoinShares, alternative cryptocurrencies performed better in the previous week, with a total of sixteen million dollars in net inflows. This includes significant investments in polkadot (DOT), avalanche (AVAX), and litecoin (LTC).

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