by 2 minutes Read (Reuters) – NEW YORK (Reuters) – 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. PHOTO FROM THE FILE: In this picture from June 29, 2021, representations of the cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, and Litecoin are displayed on a PC motherboard. REUTERS/Dado Ruvic/File Photo/Illustration In the week ending July 9, crypto outflows totaled $4 million, with bitcoin products seeing the largest outflows of roughly $7 million in the quietest trading week since October 2020. The outflows followed a two-week period of inflows, according to CoinShares’ analysis. Despite this, bitcoin has received $4.2 billion in net inflows 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 is correct, Glassnode estimates that around a quarter of a hash power equivalent has returned to the network. Despite its troubles this year, bitcoin remains the world’s most popular cryptocurrency, with a price increase of roughly 14% in 2021. The Ethereum blockchain’s native cryptocurrency, Ether, saw a $800,000 outflow in the previous week. Ether has received $961 million in net inflows so far this year. Last week, multi-asset investment products were the most popular, with $1.2 million in inflows. In 2021, these products received $362 million in inflows, accounting for 16.5 percent of the $39.2 billion in total crypto assets under management, indicating that investors are aiming to diversify their digital asset holdings. Grayscale is still the largest crypto asset manager, but its assets under management have fallen to $29.3 billion as crypto values have fallen. CoinShares, the second-largest digital asset manager, saw its AUM drop to $3.3 billion this week, essentially unchanged from the prior week. Gertrude Chavez-Dreyfuss contributed reporting, and William Maclean edited the piece./n
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