NEW YORK (CBSNewYork) – According to data provided on Monday by digital asset manager CoinShares, cryptocurrency investment products and funds saw withdrawals to start the second half of the year, as cautious attitude lingered in the middle of a summer slowdown. In the week ending July 9, crypto outflows totaled US$4 million, with bitcoin products seeing the largest outflows of approximately US$7 million in what was the quietest trading week since October 2020. The outflows followed a two-week period of inflows, according to CoinShares’ analysis.
Despite this, bitcoin has had net inflows of US$4.2 billion this year.
In a research released on Monday, blockchain data company Glassnode stated that there are signs of revival in bitcoin mining, a sector that has been badly impacted recently owing to China’s limitations.
Hash-rate, a measure of mining activity, has rebounded from a 55 percent drop from peak to trough to only a 39 percent drop, according to data. If this stays true, Glassnode estimates that nearly a quarter of a hash power equivalent has returned online. Despite its troubles this year, bitcoin remains the world’s most popular cryptocurrency, with a price increase of around 14 percent in 2021.
The Ethereum blockchain’s native cryptocurrency, Ether, saw a tiny outflow of US$800,000 in the previous week. The net inflows into ether this year have totaled US$961 million. With inflows of US$1.2 million, multi-asset investment products were the most popular last week. Inflows of US$362 million, or 16.5 percent of total crypto assets under management of US$39.2 billion, were recorded in 2021, indicating that investors are eager to diversify their digital asset holdings. Grayscale is still the largest crypto asset manager, but its assets under management have fallen to US$29.3 billion as crypto values have fallen. CoinShares, the world’s second-largest digital asset management, saw its AUM fall to US$3.3 billion, essentially unchanged from the previous week. (By Gertrude Chavez-Dreyfuss, William Maclean, and Gertrude Chavez-Dreyfuss)/n
