Crypto funds under management rise slightly last week

CoinShares’ weekly survey of cryptocurrency fund activity suggests continued lack of engagement amongst investors as total investment inflows into digital assets hit only $7 million last week.

According to the latest edition, Bitcoin was the primary focus of inflows after experiencing additional investments of $17 million for the week. That was the first inflows following a 5-week run of outflows, amounting to $93 million over that span. The arrival of new funds coincided with a choppy week of trading that saw the price of BTC oscillate between $18,400 and $20,700.

Meanwhile, post Ethereum Merge flows indicate continued caution amongst investors with a 4th week of outflows totaling $15 million. Indeed, the 2022’s negative net flows were manly driven by $376 million in outflows from Ethereum products.

Multi-asset investment products remain a stalwart during this bearish period having only seen a few weeks outflows this year. YTD inflows now total $224 million almost matching Bitcoin’s total inflows, implying investors are seeking safety in numbers.

Regionally, the inflows were focused on the US and Germany, totaling $14 million and $11 million respectively. While Sweden and Canada saw outflows totaling $16 million and $4.2 million respectively.

With overall sentiment on cryptocurrencies turning cautious as the bitcoin rally hit a wall, CoinShares writes that it is difficult to ascertain the precise reason for this other than the hawkish rhetoric from the Federal Reserve and the recent price decline.

CoinShares is Europe’s largest digital asset investment firm. The company’s ETPs aim to offer a low-cost product providing regulated access to crypto tokens, whilst benefiting from the institutional grade security and 100% physically backed features that match other ETC securities.

Revenue at CoinShares fell in the second quarter from the previous one, weighed down by a decline in institutional investors’ interest in cryptocurrency trading.

In terms of its net income, Coinshares reported a loss of £0.1 million in the quarter ending June 30 from a positive income of £26.6 million the previous years. That was Coinshare’s its first negative quarter since going public in March 2021.

The company attributes the net loss to its TerraUSD (UST) holdings. The London-based firm recorded an “exceptional” loss of £17 million (roughly $21.4 million) from its exposure to Terra’s token when it exited its UST position.