Crypto funds snap six-week of outflows as money flows into altcoins

Digital asset funds saw net inflows of $21 million last week. However, during the six-week period, the longest losing streak since January 2018, digital asset investment products saw total redemption of  $115 million.

However, bitcoin saw its seventh straight week of outflows, as investors took out $2.8 million from funds based on the world’s biggest cryptocurrency during last week.

Bitcoin rallied from a weekly low of $43,998 to a new multi-month high of $49,669 during last week.

The positive price action in recent weeks has now pushed total assets under management (AUM) of crypto funds to $57.3 billion, the highest since mid-May.

Interestingly, solana, a competitor to ether, saw the largest inflows of any digital asset last week, totalling $7.1 million.

Meanwhile, ether saw minor inflows totalling $3.2 million last week along with other altcoins such as cardano, litecoin and polkadot, which saw inflows of $6.4 million, $1.8 million and $1.1 million, respectively.

“Flows across product providers remained mixed, with some continuing to post outflows for the week while others in both North America and Europe posted inflows. We believe this indicates the beginning of a turn in sentiment for digital assets,” CoinShares said in a note.

Bitcoin saw its seventh straight week of outflows, totalling $2.8 million, matching the run seen in January 2018. “While this may suggest sentiment remains negative, it masks very mixed flows across providers,” the digital-asset manager said.

In terms of crypto fund providers, the world’s biggest digital-asset manager, Grayscale, remained steady with a total AUM of $42.63 billion, followed by CoinShares at $4.23 billion and 3iQ with an AUM of $2.23 billion.