The American banking industry’s recent events have sent shockwaves throughout the investment community, causing major institutional investors to panic.
Over the course of just five days, a staggering $255 million was withdrawn from cryptocurrency funds and trusts.
This marks the fifth week in a row where outflows from crypto investment products have been observed.
Despite this, it is worth noting that the amount withdrawn only represents approximately 1% of the total volume of digital assets in funds and trusts.
Interestingly, back in May 2019, there was a similar outflow of funds that amounted to 1.9% of the total, albeit with a much smaller sum of $51 million.
Since then, the volume of funds in cryptocurrency funds has grown significantly by 816%. It is worth mentioning that institutional investors in the United States have not withdrawn funds and, in fact, added an additional $10.7 million into cryptocurrency funds.
A positive inflow of funds was also recorded in Brazilian cryptocurrency products, totaling $1.1 million.
However, in all other regions, there has been a noticeable outflow of capital, with Canada standing out in particular.
It appears that one or several large investors withdrew a massive $219.4 million from the company’s $3iQ bitcoin products, representing a quarter of the total capital under management of the company. In total, Canadian investors have withdrawn $229.7 million from cryptocurrency funds.
Despite the recent turbulence, the cryptocurrency market remains highly dynamic and unpredictable, making it challenging for investors to make informed decisions.
The majority of the funds were pulled out from bitcoin trusts, totaling $243.5 million, with the same Canadian investor being the primary influencer.
Additionally, there was an outflow observed from funds related to ether, short bitcoin, LTC, and Tron. On the other hand, multi-currency funds, trusts based on SOL, XRP, and MATIC reported a slight inflow of funds, albeit insignificant.
CoinShares had previously disclosed that the cryptocurrency industry was experiencing a decline in funds due to the growing pressure from US regulators on digital assets.