Investment funds focused on cryptoasset investments have recorded a large capital outflow recently. With the bitcoin price fluctuation in early April 2022, users withdrew about US$134 million in just one week.
According to CoinShares, this is the largest outflow from cryptoasset funds recorded in the past four months. Before that, the crypto market experienced two uninterrupted weeks of large inflows.
Cryptoassets Outflows follow bitcoin
The investment movement in funds followed the appreciation of bitcoin between late March and early April 2022. In that period, the digital currency reached nearly US$48 thousand, a time that coincided with a large cryptoassets’ withdrawal.
According to the CoinShares report, the outflow movement may be related to the profit earned by users who invested in bitcoin through funds. In other words, the US$134 million outflow may be the result of a profitable trade with bitcoin appreciating through the first week of April.
“We believe that the previous week’s price appreciation may have led investors to profits taking”.
But soon after the outflow movement from the funds, the cryptoasset plummeted on the crypto market, reaching values below US$ 40,000.
Most withdrawals are in BTC
The CoinShares report further analyzes that bitcoin (BTC) is the cryptoasset that suffered the most withdrawals in early April 2022. More than US$ 131 million of the digital currency was liquidated by users.
Meanwhile, ether (ETH) was the second most affected digital currency by the outflow movement. As such, users withdrew more than US$15 million, and by 2022 ether already totals US$126 million in withdrawals.
On the other hand, other altcoins did not have significant capital losses in investment funds. Unlike ether and bitcoin, digital currencies such as solana (SOL) and cardano (ADA) are among the cryptossets that had an inflow of US$6 million in the same period.