Crypto funds see $109 million net inflows despite Russia-Ukraine crisis
Premium- While inflows were seen in both Europe and the Americas, it was predominantly the latter with net inflows totaling $101 million
Crypto asset funds saw net inflows totaling $109 million in the week to 18 February despite recent price weakness and perceived negative impact from the looming conflict in eastern Europe, according to a report by digital asset manager CoinShares.
Following the run of outflows during January, the latest data marks the fifth straight week of inflows.
The crypto market has been impacted by the Russia-Ukraine crisis. Bitcoin is down over 16% on a fortnight basis, while ethereum is down more than 20%. Russia's aggression towards Ukraine has prompted the US and Europe to vow sanctions, further casting a shadow over global markets.
As per the digital asset manager, while inflows were seen in both Europe and the Americas, it was predominantly the latter with net inflows totaling $101 million.
In terms of specific assets, the world’s biggest cryptocurrency, bitcoin, saw the largest net inflows totaling $89 million last week, the highest since December 2021. “The inflows remain tepid, with the last five weeks of inflows totaling $221 million, representing 0.70% of total assets under management (AUM)," CoinShares said in the report.
On the other hand, funds tracking multi-crypto assets and solana saw inflows totaling $9.4 million and $1.2 million, respectively last week, and appear relatively insulated from outflows seen in other products.
Avalanche, another smart contract platform and competitor to ethereum, saw inflows totaling $25 million last week. CoinShares believes, as this inflow represented trading on one single day, it is too early to tell if this represents broader appetite for the altcoin.
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In terms of individual crypto fund providers, the world’s biggest digital asset manager, Grayscale had a total AUM of $35.39 billion, followed by CoinShares at $3.72 billion and 3iQ with an AUM of $2.08 billion. The total AUM of crypto fund providers was at $51.38 for the week ended 18 February.
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