CoinShares: Crypto funds continue to lose investment capital

Article Reading Time:
2 minutes.

Analytics firm CoinShares posted a report claiming that crypto funds experienced $27 million in capital outflows last week.

According to analysts, investors in three weekswithdrew $46 million. Experts say that the level of volumes of investment products remains very low and last week amounted to $901 million, which is the lowest level since October 2020.

According to CoinShares experts,This is partly due to seasonal effects and underlines the continued apathy among investors after the recent price decline. At the regional level, minor outflows were observed across the board, but were concentrated mainly in the US, Sweden and Germany. The total outflow in these countries was $20 million, $4.2 million and $2.3 million, respectively. The only exception was Brazil, which saw minor inflows totaling $1.2 million.

The report says that Bitcoin funds for threeweeks lost $29 million. According to experts, investors continue to invest money in short-term investment products based on BTC. Last week, about $1 million was invested there.

The situation means minimal but permanentcaution on the part of investors associated with the tight policies of the US Federal Reserve System (FRS). The Ethereum market has seen minor outflows totaling $1 million. This means that, despite increasing confidence that the ETH merger will happen in September, investors are choosing to wait until the merger is successfully completed. Analysts note minor capital inflows into the Solana, Cardano, XRP, Tezos, Chainlink and Uniswap markets as a positive sign.

According to research agency Arcane Research, cryptocurrency owners are withdrawing funds en masse from exchanges and crypto lending services, preferring to store them in cold wallets.