Crypto fund outflows slow as volumes rise

Outflows from crypto investment products in the period from August 26 to September 1 fell from $168 million (the highest since March 2023) to $11.2 million. Analysts at CoinShares said.

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Over the last seven weeks, investors pulled $342 million from crypto products in total. Since the start of the year, there has been a net inflow of $165 million.

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“Big swings in sentiment are largely driven by hopes and fears about the regulation of digital assets,” the report says.

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In support of this view, analysts cited expectations for the launch of the Bitcoin-ETF in the United States, which did not materialize after the postponement of the SEC’s decisions on a number of applications.

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Trading volumes rose to $2.8 billion — 90% of the year-to-date average.

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In Bitcoin funds, inflows resumed after a $149 million outflow a week earlier. Investors increased their positions in the product by $3.8 million.

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Among structures that allow short exposure on the first cryptocurrency, clients withdrew $3.3 million compared with $4 million in the previous reporting period. Negative momentum continued for the 19th week in a row. AUM fell 48% in this period, to $103 million.

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In altcoin-based products, performance was mixed. From Ethereum funds, investors withdrew $3.2 million versus $16.8 million in the previous week.

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More aggressive selling activity targeted Polygon-based structures ($8.6 million). Solana funds, by contrast, attracted $0.7 million. Inflows have persisted for the ninth week in a row, with year-to-date inflows reaching $26 million.

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The legal victory by Grayscale in the case against the SEC prompted Bloomberg analysts to raise the probability of launching a Bitcoin-ETF in the United States by the end of 2023 to 75%.

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Earlier, former SEC chair Jay Clayton said the approval of such products was inevitable.