Between August 19 and 25, total assets under management plummeted by 89%, the greatest outflow since March 2023.
CoinShares reported that this was largely driven by organizations involved in bitcoin, which pulled out $149 million.
Ethereum had an outflow of $17 million, while Ripple and Litecoin had relatively minuscule gains of $500,000 and $440,000, respectively.
Experts attributed this fall to a combination of “exceptionally low trading volume” among traders closing out their short positions, along with growing doubts over the success of impending bitcoin ETFs in the US due to delays by the US Securities and Exchange Commission.
The current total valuation of investment crypto products is estimated to be about $1.3 billion, which is 16% below the average year-long amount.
Additionally, Glassnode recently reported that the 7.2% fall of bitcoin this year has caused the share of “unprofitable” coins among short-term investors to increase drastically up to 88.3%.
