Cryptocurrencies show inflows after record outflows

08 June 2021 | Economics

GERTRUDE CHAVEZ-DREYFUSS

Cryptocurrencies posted inflows last week after hitting record outflows the previous two, as investors took advantage of price declines in the market, data from digital currency manager CoinShares showed.

Inflows into crypto investment products and funds totalled US$74 million last week. That followed record outflows of US$151 million the previous two weeks, representing 0.3% of assets under management.

Bitcoin products continued to see outflows last week of about US$4 million, CoinShares data showed. This brings the total outflow over the last three weeks to US$246 million. For the year, however, bitcoin still showed inflows of US$4.4 billion.

The world's most popular currency rose 3% last week and was last up 3.8% at US$38 104.

Ether, the second largest cryptocurrency in terms of market capitalization and the token used for the Ethereum blockchain, showed inflows of US$47 million, with total inflows totalling US$973 million. Its price was up 13% last week, but dropped 41% the week before.

Investment product flows also showed that altcoins, or the non-bitcoin, non-ether tokens, remained popular, with inflows into Cardano and Polkadot and Ripple.

Grayscale remains the largest digital currency manager at US$33.6 billion, but their assets under management were down from US$47.3 billion two weeks ago.

CoinShares, the second-biggest and largest European digital asset manager, oversaw about US$3.9 billion in assets as of last week, down from about US$6 billion two weeks ago. - Nampa/Reuters