The crypto industry has ended its week-long influx of blue-chip capital amid a widespread market decline.
According to data from leading digital asset manager CoinShares, the crypto market saw $ 142 million in outflows from institutional investors for the first time in 17 weeks.
“Digital asset investment products recorded outflows totaling $ 142 million, the first outflow in a 17-week inflow and the largest weekly outflow on record. The largest outflow recorded to date was in early June 2021, when weekly outflows were $ 97 million. “
The analysis also showed that the inflows of funds into the ETH competitors Solana (SOL) and Polkadot (DOT) slightly helped cushion the blow as they recorded $ 6.7 million and $ 2.5 million in blue-chip inflows over the same period.
While the pullback may seem bleak, it is important to be aware of the context of the outflows, according to CoinShares.
“While this runoff seems alarming, there are several points to consider. First, there comes a time when there has been significant outflows on all risk assets following the recent Fed statement on tapering.
Second, outflows account for only 0.23% of total assets under management (AUM) and are historically small compared to outflows in early 2018, where weekly outflows accounted for up to 1.6% of AUM.
After all, the outflows come at a time when there have been record inflows of $ 9.5 billion annually, compared with total inflows of $ 6.7 billion in 2020. “
At the time of writing, BTC and ETH are trading hands at $ 46,203 and $ 3,831, respectively, while SOL and DOT are trading at $ 173.14 and $ 23.74, respectively.
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Source: Crypto News Deutsch