Flows into digital asset investment items declined by approximately $79 million to $21 million during the seven-day period through March 26, the lowest since October, based on a new report by CoinShares, a asset investment firm that is digital.
Slowing investor appetite for cryptocurrency funds reflects price that is sideways in bitcoin (BTC). The cryptocurrency has exchanged between $50,000 and $60,000 within the week that is past.
“Investor appetite for digital assets has waned in recent days as volatility remains high and also the cost trades sideways,” CoinShares wrote in the report.
“We have actually recently witnessed a decrease that is significant inflows, and in some cases outflows, for the larger and longer-established pre-2016 investment services and products,” according to the report. “We think this is as a result of investors sitting on multi-year gains taking profits.” Investment flows within the U.S. are slowing, while Europe and Canada continue to hold up.
Trading volumes in digital-asset investment services and products declined to $788 million a day week that is final versus an average $900 million each day up to now in 2021.
Bitcoin received the greatest inflows, based on the report, “but Ethereum for a market capitalization basis (as we’ve noticed in previous days) remains very popular with inflows of $5 million.”