Crypto asset fund outflow reaches highest level since March of this year

Last week, about $600 million (approximately KRW 828.5 billion) was leaked from the virtual asset fund. This is the largest weekly outflow since last March.

According to a report published by CoinShares on the 17th (local time), $621 million worth of funds were leaked from Bitcoin (BTC) investment products last week. Coinshares cited the hawkish monetary policy stance of the U.S. Federal Reserve as the reason for capital outflow from BTC. Coinshares analyzed that “the Federal Reserve is maintaining interest rates that are unexpectedly high.” The Federal Reserve froze the base interest rate at 5.25-5.50% on the 12th.



On the other hand, altcoins (virtual assets excluding BTC) showed an inflow. During the same period, $13.2 million and $1.1 million were invested in Ethereum (ETH) and Ripple (XRP) investment products, respectively, and investments in Binance Coin (BNB), Litecoin (LTC), Cardano (ADA), and Chainlink (LINK). A small amount of money also flowed into products.

However, it is pointed out that the funds flowing into altcoins did not play a significant role in preventing the outflow of funds from all virtual assets. Total assets under management (AUM) of virtual assets decreased from $100 billion to $94 billion in one week.

Some experts analyzed that funds were flowing out due to low institutional investor interest in virtual assets. “Institutional adoption of Bitcoin is still in its early stages,” said Trust Square co-founder Mark Degen. Jenny Johnson, CEO of Franklin Templeton, also predicted, “New investment flows will only emerge if institutions pay attention and actively invest capital.”

Reporter Lee Yeon-ju

juya@rni.kr