{"id":175875,"date":"2023-05-24T01:39:09","date_gmt":"2023-05-24T01:39:09","guid":{"rendered":"https:\/\/precoinnews.com\/?p=175875"},"modified":"2023-05-24T01:39:09","modified_gmt":"2023-05-24T01:39:09","slug":"crypto-funds-lose-millions-for-fifth-week-as-ltc-and-xrp-attract-investors","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/altcoins\/crypto-funds-lose-millions-for-fifth-week-as-ltc-and-xrp-attract-investors\/","title":{"rendered":"Crypto Funds Lose Millions for Fifth Week as $LTC and $XRP Attract Investors"},"content":{"rendered":"
Institutional investors have kept on moving funds out of cryptocurrency investment products over the past week, marking a fifth consecutive week of outflows that has now reached a cumulative $232 million. The outflow represents a 0.7% decrease in total assets under management.<\/p>\n
According to CoinShares\u2019 latest Digital Asset Fund Flows report, the volume of cryptocurrency investment product transactions amounted to $900 million over the past week, a significant 40% decline from the year\u2019s average. Similarly, trading volumes across trusted exchanges in the broader market plunged to a new low since late 2020, standing at a mere $20 billion for the week.<\/p>\n
CoinShares\u2019 report details that Bitcoin, the flagship cryptocurrency, was at the epicenter of negative sentiment, and experienced $33 million in outflows that represent a continuation of the trend observed over the past five weeks.<\/p>\n
Surprisingly, there were also minor outflows of $1.3 million from Short-bitcoin \u2013 an investment strategy that benefits from falling bitcoin prices. Combined, these two types of investment products have seen outflows totaling $235 million over the last five weeks.<\/p>\n
The reason behind the negative sentiment toward both long and short investment products remains a topic of speculation among analysts. While some attribute this trend to ongoing regulatory concerns and market volatility, others point toward broader macroeconomic factors that may be influencing investor sentiment.<\/p>\n
Interestingly, amidst this downturn, altcoins \u2013 cryptocurrencies other than Bitcoin \u2013 have managed to buck the trend, albeit with one notable exception. Ethereum, the second-largest digital currency by market capitalization, reported an outflow of $1 million. However, other altcoins, including Avalanche and Litecoin, registered inflows of $700,000 and $300,00, respectively.<\/p>\n
Blockchain equity ETFs, investment funds that track a basket of blockchain-based companies\u2019 stocks, recorded their second consecutive week of minor outflows, shedding $2 million last week.<\/p>\n
As CryptoGlobe reported \u00a0Mike McGlone, senior macro strategist at Bloomberg Intelligence, recently revealed he considers there\u2019s potential for a significant Bitcoin downturn that could see the cryptocurrency\u2019s price drop back down to $7,000.<\/p>\n
Meanwhile, Tether, the firm behind the leading stablecoin USDC, has made a strategic decision to invest a significant portion of its operating profits into Bitcoin.<\/p>\n
According to Tether\u2019s announcement, the company will initiate a policy of consistently allocating up to 15% of its net realized operating profits toward purchasing Bitcoin (BTC).<\/p>\n