The sector has experienced four consecutive weeks of outflow since mid-December, reaching a total of $ 465 million, or 0.8% of total assets under management.
Bitcoin, the world’s largest cryptocurrency by market cap, posted outflows of $ 107 million in the week to January 7.
CoinShares investment strategist James Butterfill said the cash outflows were a “direct response to Federal Open Market Committee (FOMC) minutes that revealed the US Federal Reserve’s concerns about rising inflation and falling. investors’ fear of a rise in interest rates “.
A policy tightening by the Fed is a negative factor for risky assets such as cryptocurrencies due to tighter liquidity conditions and increased market volatility.
Over the past four weeks, Coinshares noted that there had been more investor activity than usual.
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Since the start of the year, Bitcoin has lost almost 10% of its value against the US dollar. On Monday, it fell below $ 40,000 for the first time since September 2021.
“A phase of heavy loss realization by major buyers followed the Dec.4 (bitcoin) flush,” blockchain data provider Glassnode said in its latest research report on Monday.
“In the weeks that followed, on-chain behavior was more strongly dominated by the HODLer class (long-term holders), with little activity from new entrants in the market,” he said. added.
Ethereum-based products saw outflows of $ 39 million last week, posting five straight weeks of outflows with a total of $ 200 million. CoinShares said on a proportional basis, Ethereum’s outflows represented 1.4% of the total AUM, higher than that of bitcoin.
Blockchain-related equity investment products have not escaped negative sentiment for the industry, with outflows of $ 10 million last week.
Assets under management at Grayscale and CoinShares, the world’s two largest digital asset managers, fell from their highs to $ 38.2 billion and $ 4.3 billion, respectively.