Investors withdrew a net total of $255 million from exchange-traded crypto funds last week, the largest weekly outflow CoinShares has ever recorded, according to a report on Monday.
Assets under management, or AUM, fell 10% over the past week to $26 billion, undoing progress made in crypto-based funds since the start of the year. Withdrawals represent 1% of the total assets invested in the crypto fund, according to CoinShares.
CoinShares tracks the flow of money in and out of exchange-traded products, mutual funds, and over-the-counter (OTC) trusts that track crypto assets such as Bitcoin, Ethereum, and altcoins.
Bitcoin funds were hit particularly hard, accounting for $244 million of cash flowing out of crypto funds, according to CoinShares. Ethereum funds lost $11 million during the week and outflows from altcoin funds, such as Litecoin and Tron, contributed less than $1 million, according to the report.
Weekly inflows to Solana, XRP, Polygon and multi-asset funds amount to just $3 million.
CoinShares head of research James Butterfill wrote that while the total weekly outflow is the highest ever, it is not the highest when expressed as a percentage of total assets invested in the crypto fund.
Back in May 2019, the $51 million weekly outflow represented about 2% of all assets invested in crypto funds at the time.
“This highlights how much total AUM has increased since May 2019— 816%,” he wrote in the report.
CoinShares highlights the chaos in crypto
The last week was brutal for the banking industry, especially institutions serving the technology sector and the crypto industry.
After weeks of speculation that it wouldn’t survive the blow it was dealt when a former FTX client filed for bankruptcy, crypto-friendly Silvergate Bank announced that it would be ceasing operations on Wednesday.
On Thursday, panic on social media created a bank run for Silicon Valley Bank, which counts nearly half of all venture-backed tech startups in the US as its customers. After reports of stalled transfers, the California Department of Financial Protection and Innovation closed the SVB and named the Federal Deposit Insurance Corporation as its beneficiary on Friday.
Then on Sunday night, New York state regulators shut down Signature Bank, one of the few remaining crypto-friendly banks.
Stay on top of crypto news, get daily updates in your inbox.
