The crypto industry has ended its weeks-long streak of blue-chip capital inflow amidst a widespread market pullback.
According to data from leading digital asset manager CoinShares, the crypto market saw $142 million worth of outflows from institutional investors, the first in 17 weeks.
“Digital asset investment products saw outflows totaling $142 million, the first outflow following a 17 week run of inflows, and the largest weekly outflow on record. The largest previous outflow on record was early June 2021 where weekly outflows totaled $97 million.”
The analysis also found that inpouring funds to ETH competitors Solana (SOL) and Polkadot (DOT) slightly helped to soften the blow as they saw $6.7 million and $2.5 million in blue-chip inflow during the same time frame.
Though the pullback may seem grim, CoinShares says it’s important to note the context of the outflows.
“While this outflow appears alarming there are several points to consider. Firstly, it comes at a time where there have been considerable outflows across all risk assets following the recent US Federal Reserve statement on tapering.
Secondly, outflows represent only 0.23% of total assets under management (AUM), and from a historical perspective, are small relative to the outflows in early 2018 where weekly outflows represented up to 1.6% of AUM.
Finally, the outflows come at a time of record yearly inflows peaking at $9.5 billion, relative to inflows totaling 6.7 billion in 2020.”
At time of writing, BTC and ETH are exchanging hands at $46,203 and $3,831 respectively while SOL and DOT are trading for $173.14 and $23.74.Check Price Action
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