CoinShares: Large investors withdrew a record amount of funds from crypto funds

Events in the US banking sector caused panic among large institutional investors. A record $255 million was withdrawn from crypto funds and trusts in five days.

The outflow of cryptocurrency investment products is observed for the fifth week contract. However, the withdrawal of $255 million from March 6 to March 10 was a record in the history of such trusts. This is approximately 1% of the total digital assets in funds and trusts.

True, in May 2019, the outflow for the week amounted to 1,9% of the total, but then it was only $51 million. Since then, the volume of funds in cryptocurrency funds has grown by 816%.

Interestingly, in the United States, institutional investors not only withdrew funds, but, on the contrary, contributed an additional $10,7 million to cryptocurrency funds. A positive inflow of funds was also recorded in Brazilian cryptocurrency products ($1,1 million).

Every other region has seen significant capital outflows, and Canada stood out as one large investor (or several) withdrew $219,4 million at a time from 3iQ’s bitcoin products. This is a quarter of the total capital under management of the company. In total, Canadian investors withdrew $229,7 million from cryptocurrency funds.

Most of the funds were withdrawn from Bitcoin trusts - $ 243,5 million (the same Canadian investor suffered). There were also outflows of funds for ether, short bitcoin, LTC and Tron. But multi-currency funds, trusts on SOL, XRP and MATIC reported an influx of funds, albeit in small volumes.

Earlier, CoinShares reported that pressure from US regulators on the cryptocurrency industry is leading to an outflow of funds from cryptocurrency funds.