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Crypto Funds Suffer 2nd Straight Week of Outflows; Investors Rotate Toward Altcoins
Investors exited digital asset funds amid the crypto sell-off, and have diversified into altcoin products.
Updated Mar 6, 2023, 3:17 p.m. Published May 24, 2021, 5:49 p.m.
Digital-asset investment funds suffered outflows for a second straight week, a sign profit taking is offsetting fresh money amid the crypto sell-off.
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Investors pulled a net $97 million from cryptocurrency-related investment funds during the week ending May 21, or 0.2% of total assets under management, according to a Monday report by CoinShares.
- Outflows “represent a net change in sentiment following increasing regulatory scrutiny and concerns over bitcoin’s environmental credentials,” according to CoinShares.
- “Last week saw lower outflows for bitcoin with outflows of $111 million versus $115 million the previous week.”
- Investors continued to diversify into altcoin investment products last week totaling $27 million in inflows, led by cardano.
- The rotation into altcoins could “represent investors actively choosing proof-of-stake coins based on environmental considerations.”
- On May 12, Tesla announced that it was suspending bitcoin payments over environmental concerns, accelerating a move down in bitcoin prices. The cryptocurrency is down about 34% month to date.
- Ethereum products saw minor outflows of $12.6 million last week following a long run of record-breaking inflows.
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- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
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What to know:
- Cleveland Fed President Beth Hammack, who in 2026 will be a voter on the central bank's policy-making FOMC, says interest rates need to stay on hold for several months.
- She threw shade on last week's surprisingly soft CPI report, noting data-collection distortions created by the government shutdown.
- Other things being equal, bitcoin would typically benefit from easier Fed monetary policy, but that hasn't at all been the case in 2025.
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