In the week ending July 9, crypto outflows totalled $4 million. Bitcoin products saw the largest outflows, with nearly $7 million. This was the quietest week of trading since October 2020. (Image: Reuters).
According to CoinShares data, cryptocurrency funds and investment products posted outflows in the first half of the year as cautious sentiment prevailed in the middle of a summer lull.
In the week ending July 9, crypto outflows totalled $4 million. Bitcoin products saw the largest outflows, with nearly $7 million. This was the quietest week of trading since October 2020. CoinShares reported that the outflows occurred after a two week run of inflows.
Bitcoin still saw net inflows of $4.2 trillion so far this year.
Glassnode, a blockchain data provider, reported Monday that there were signs of recovery in bitcoin mining. This sector has been hard hit recently by China’s restrictions.
Data revealed that the hash-rate, which is a measure of mining activity, had recovered from a peak-to-trough drop of 55% to a mere 39% decline. Glassnode stated that this would indicate that approximately 29% of the hash power equivalent has returned online if this is true.
Despite the difficulties bitcoin has faced this year, its price rose by approximately 14% in 2021.
The token Ether used in Ethereum’s blockchain saw a small outflow of $800,000. ether has seen a net inflow of $961 million so far this year.
Last week, multi-asset investment products were most popular with $1.2 million inflows. These products saw inflows of $362,000,000, or 16.5%, of the total crypto assets under control of $39.2 Billion. This suggests that investors are trying to diversify their digital asset portfolios.
Grayscale is still the largest crypto asset manager but its assets under supervision have fallen further to $29.3 Billion as crypto prices fell.
CoinShares, second largest digital asset manager, saw its AUM drop to $3.3 billion. This is little different from the week before.