Crypto Funds Suffer 6th Week of Outflows Despite Bitcoin Rally

Investors redeemed a net $22.1 million from cryptocurrency funds last week, the sixth consecutive week of outflows, even as bitcoin and many other digital assets rallied, a new report shows.

It's the longest streak of outflows since January 2018, according to the report Monday by the digital-asset manager CoinShares.

Investors have seen an outflow of $22 million from bitcoin, despite that the largest cryptocurrency has recently traded up to $48,200 from a low of $29,608 last month. Bitcoin was changing hands at $46,074 as of press time, little changed over the past 24 hours.

CoinShares noted that the fund outflows come "at a time of low investor participation likely due to seasonal effects as seen in other asset classes." Trading volumes in the investment products are running at $3.1 billion per week, down from $7 billion in May.

Total assets under management in the digital-asset investment products rose 10% week-to-week to $55 billion, mostly because of price appreciation.

Last week, investment products focused on ethereum netted outflows of $1.1 million, while funds related to Binance coin saw $900,000 of outflows and investors redeemed $300,000 from multi-asset funds.

Funds focused on polkadot, cardano and stellar saw weekly inflows of $0.4 million, $1.3 million and $0.4 million, respectively.