February 5, 2023

CoinShares: Institutional Investors Withdraw $102M From Cryptocurrency Funds

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CoinShares: Institutional Investors Withdraw $102M From Cryptocurrency Funds

Analysts at the management company CoinShares state that the withdrawal of funds from financial products by institutional investors is associated with “expectation of terrible monetary policy” by the US Federal Reserve.

In the week from June 6 to 10, institutional investors withdrew $101.5 million from cryptocurrency funds, reported
CoinShares analysts.

Inflation in the US reached 8.6% per year, such an indicator has not been recorded since 1981. Therefore, most financial experts expect an increase in base rates. Against this background, investors withdraw funds from risky assets.

CoinShares: Institutional Investors Withdraw $102M From Cryptocurrency Funds

According to CoinShares from investment products$56.8 million was withdrawn to bitcoin. Ethereum was in second place in terms of outflow - $40.7 million from funds. There was also an outflow in multicurrency funds, which lost $4.7 million. Other investment products showed a positive balance at the end of the week, but the inflow of funds was very small.

The company 3iQ lost the most - from its fundswithdrew $72.1 million, which is about 5% of the total investment. Also, $43.4 million was withdrawn from the Purpose bitcoin futures ETF. Funds lost ETC and CoinShares XBT products. And Grayscale reported an inflow of $300,000. ProShares funds received the most funds ($24.2 million).

“The depreciation of bitcoin over the past sixmonths, in fact, means a new crypto winter, which can be explained as a direct consequence of the increasingly hawkish rhetoric of representatives of the US Federal Reserve, ”CoinShares analysts say.

A week earlier, the total inflow of funds into cryptocurrency investment funds amounted to $100 million.