The last digital asset fund flows report provided by CoinShares shows a sharp retraction from the significant amount of inflows into cryptocurrency investment products witnessed over the past four weeks.
In the seven days up to Friday, July 21, digital asset investment products saw around US$6.5mln (£5mln) in outflows, compared to SU$137mln of inflows the week before.
In early July, inflows across the major bitcoin and cryptocurrency investment vehicles run by CoinShares, 21Shares, ProShares and other major digital asset managers topped US$200mln as the price of bitcoin shot above US$30,000.
Credit: Bloomberg/CoinShares
This was in response to a major institutional push into the bitcoin space from BlackRock, which filed its application for a spot bitcoin exchange-traded fund with the US regulators.
But that rally has since run out of steam following a setback to BlackRock’s ambitions.
Unusually for the cryptocurrency fund markets, Ethereum funds beat out bitcoin funds in the past week, with the second-largest cryptocurrency by market capitalisation seeing US$6.6mln of inflows compared to -US$13mln of bitcoin outflows.
However, short-BTC products, which bet against the price of bitcoin, also saw around US$5.5mln worth of outflows.
Ripple (XRP) saw US$2.6mln worth of inflows, while Solana (SOL) Polygon (MATIS) also saw minor inflows.
Investors have also been hit with a shot of Ripple (XRP) confidence since its partial win against the US Securities and Exchange Commission (SEC) earlier this month.