NEW YORK – Ether investment products and funds saw record outflows in the final week of June, which was the brunt of negative sentiment towards cryptocurrencies, according to data from digital asset manager CoinShares on Monday.
Institutional investors have raised $ 50 million from investment products and funds to Ether, the token used for the Ethereum blockchain. Ether suffered from drains for the fourth straight week, the data showed.
In June, ether lost around 22% of its value against the dollar. However, on Monday, Ether rose 5.4% to $ 2,091.96.
Bitcoin products and funds, meanwhile, suffered outflows totaling $ 1.3 million for a seventh straight week. For the year, bitcoin outflows were approximately $ 490 million.
The world’s largest cryptocurrency is down 8.4% against the dollar so far in June. Bitcoin has fallen nearly 46% since an all-time high of just under $ 65,000 in mid-April.
“We assume that the Bitcoin consolidation will continue in the next few weeks until a decisive step is taken,” said Pankaj Balani, CEO of the Delta Exchange crypto derivatives exchange.
“If the global macro environment worsens due to diminishing global liquidity, it is expected that Bitcoin could break the critical $ 30,000 mark and challenge the previous cycle’s highs at $ 20.00. By then, Bitcoin is likely to be in that range and can set up a classic bull trap over $ 42,000. ”
Overall, crypto investment products saw outflows totaling $ 44 million for a fourth straight week. Since mid-May, when negative sentiment spread, weekly net outflows have been $ 313 million, or 0.8% of total assets under management.
Sentiment towards cryptocurrencies was dampened by tough crackdown on the sector that banned bitcoin mining activities.
In addition, British and Japanese regulators have independently issued warnings against Binance, one of the world’s largest cryptocurrency exchanges. The UK’s financial regulator said over the weekend that Binance could not conduct regulated activities and warned consumers about the platform.
Japan also issued a similar warning to Binance, stating that it is offering unregistered crypto exchange services to Japanese customers.
Crypto assets under management also fell to around $ 38 billion in the past week. At the end of April, these assets under management were $ 65 billion.