Altcoins News

Story: Crypto Funds Lose $414 Million as Investors Flee Market Chaos

By Julie Binoche

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Exchange-Traded Products Get Crushed. Bitcoin ETPs led the retreat, mirroring what happened in traditional crypto funds.

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Major Players Feel the Pain. Grayscale's flagship Bitcoin Trust saw its net asset value drop hard, reflecting broader market…

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Some See Opportunity in the Chaos. The SEC issued fresh warnings about crypto investment risks on March 29.

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Crypto investment funds got hammered. Last week saw a massive $414 million outflow that pretty much wiped out five weeks of steady gains, according to CoinShares data released…

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Bitcoin funds took the biggest hit with $355 million walking out the door. Ethereum wasn't far behind, losing $30 million as traders dumped positions fast.

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Interest rates keep climbing. The Federal Reserve's latest hike spooked markets across the board.

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Bitcoin ETPs led the retreat, mirroring what happened in traditional crypto funds. Ethereum ETPs also saw outflows, though not as severe as Bitcoin's bloodbath.

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"People are scared right now," said one fund manager who didn't want his name used. "When the Fed keeps raising rates, crypto looks pretty risky compared to Treasury bills.

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Market participants are watching for any signs things might turn around. But institutional interest had been growing steadily before this mess started.

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March turned into a nightmare month for crypto. European Central Bank officials released a report on March 28 warning about digital currency risks, which didn't help investor…

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Binance recorded lower trading volumes over the past week, matching the broader trend of investors backing away from crypto assets.

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James Butterfill from CoinShares thinks the current bearish sentiment might not last forever.

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Asian markets felt the pain too. Singapore-based Crypto.com reported a 20% decline in daily trading volumes on March 30.

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The SEC issued fresh warnings about crypto investment risks on March 29. That advisory probably pushed more investors toward the exits, adding to outflow pressures across the…

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Cathie Wood's ARK Invest went the other way, buying $50 million worth of Bitcoin during the dip according to a March 31 filing.

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